T5^ 

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ECONOMICS    OF   EFFICIENCY 


THE  MACMILLAN  COMPANY 

NEW  YORK   •    BOSTON   •    CHICAGO  •    DALLAS 
ATLANTA   •    SAN   FRANCISCO 

MACMILLAN  &  CO.,  Limited 

LONDON  •    BOMBAY   •    CALCUTTA 
MELBOURNE 

THE  MACMILLAN  CO.  OF  CANADA,  Ltd. 

TORONTO 


ECONOMICS  OF  EFFICIENCY 


BY 
NORRIS   A.   BRISCO,  A.M.,  Ph.D.    '' 

AUTHOR   OF   «*  ECONOMICS    OF   BUSINESS,"    "THE   ECONOMIC   POLICY 

OF   ROBERT   WALPOLE,"    DEPARTMENT   OF   POLITICAL 

SCIENCE,   COLLEGE    OF   THE    CITY 

OF  NEW  YORK 


^OSTOK  COTX.O^  ^BAKY 

THE   MACMILLAN   COMPANY 
1914 

A /I  rights  reserved 


Copyright,  1914, 
By  the  MACMILLAN  COMPANY. 


Set  up  and  electrotyped.    Published  November,  1914. 


lijHiQO 


J.  S.  Gushing  Co.  —  Berwick  &  Smith  Co. 
Norwood,  Mass.,  U.S.A. 


MY  SON  NORRIS 


Digitized  by  the  Internet  Archive 

in  2010  with  funding  from 

Boston  Library  Consortium  IVIember  Libraries 


http://www.archive.org/details/economicsofefficOObris 


PREFACE 

The  growing  complexity  of  the  American  industrial 
system  and  the  increasing  keenness  of  competition  have 
introduced  a  new  era  in  business.  Goods  are  produced 
and  sold  on  small  margins,  and  the  extent  of  profits  de- 
pends in  a  large  measure  upon  efficiency.  A  new  busi- 
ness science  has  grown  up  in  our  midst,  and  it  may 
be  called  the  science  of  efficiency.  Efficiency  is  the 
watchword  of  future  industrial  progress,  growth,  and 
expansion.  The  nation  which  produces  with  the  greatest 
efficiency  will  be  the  one  which  will  lead  the  van  of 
industrial  nations.  The  business  man  who  heeds  the 
edicts  of  efficiency  will  be  the  one  who  will  be  able  to 
produce  at  the  least  cost,  and  to  command  markets. 

The  aim  of  efficiency  is  the  elimination  of  waste.  The 
new  science  of  efficiency  bases  business  activity  upon 
knowledge.  Knowledge  takes  the  place  of  guesswork 
and  ignorance.  Efficiency  demands  a  scientific  study 
of  the  different  phases  of  work  to  ascertain  how  it  can 
best  be  done  with  the  least  expenditure  of  energy,  time, 
and  materials.  It  is  giving  business  a  critical  aspect, 
by  making  a  study  of  how  things  should  be  done  and 
how  they  are  done.  The  chief  aim  of  this  book  is  to 
open  the  eyes  of  business  men  to  the  underlying 
principles  of  efficiency,  to  emphasize  the  importance 
of  these  principles,  and  to  explain  their  methods  and 
workings  in  such  a  way  that  all  business  men  will  profit. 

NORRIS  A.  BRISCO. 
New  York, 

Oct.,  1914. 

vii 


i  CONTENTS 

CHAPTER   I 
ECONOMIC   NEED   OF   EFFICIENCY 

PAGE 

Industrial  Efficiency  a  New  Study —  Effects  of  Factory  System  — 
New  Science  of  Business  —  Human  Factor  Neglected  —  Ex- 
tent of  Wastes  —  Efficiency  the  Goal  —  Conservation  of 
Workers  —  Accurate  Knowledge  of  Workers  —  Requisites  — 
Specialization  —  In  Factory — Effects  on  Labor — Dangers 

—  Demands  of  Industry — Requisites  for  Future  Industrial 
Progress  —  Standardization —  Extent —  Kinds  —  Competition 

—  Led  to  Lower  Costs  — ■  Varieties  of  Utilities  —  Factors  in 
Production  —  Land  —  Labor  —  Capital  —  Management  — 
Business  Men  Should  Heed  Efficiency 1 

CHAPTER   II 

EFFICIENCY 

Evolution  of  the  Efficiency  Movement — ^Efficiency —  Meaning  — 
How  to  Ascertain — Denominator — Computed]  Efficiencies 

—  Efficiency  in  Public  Administration  —  Wastes  in  the  Edu- 
cational Systems  —  Applying  Efficiency  to  Work — How  to 
Introduce  Changes  —  Wastes  —  Kinds  —  How  to  Eliminate 

—  Strenuousness  vs.  Efficiency — Efficiency  Protects  Health 

—  Importance  of  Knowledge  —  Method  of  Obtaining — Im- 
portance of  Scientific  Study  of  Business — Search  for  Ideas 

—  The  One  Best  Way  —  How  to  Attain  —  Problems  to  be 
Solved  in  Efficiency 27 

CHAPTER   III 
MANAGEMENT   AND   THE   PLANT 

Foundation  of  Efficient  Management  —  Organization  —  Impor- 
tance—  System —  Requisites  —  Advantages —  Coordination 

—  Handling  of  Details — Requisites  for  Reports — Sugges- 


CONTENTS 


tions  and  Ideas  —  Importance —  Cost  System  —  Requisites  — 
Advantages  —  Plant  Location  —  Design  of  Buildings  —  High 
Grade  Machines  and  Tools —  Quality — In  Buying  —  In  Pro- 
duction —  Savings  from  Waste  Products  —  Storage  of  Ma- 
terials—  Store  Room — Moving  Goods  in  a  Plant — System 
in  Shipping  Goods  —  Routeing  Goods  —  Inventory  —  Buying 

—  SelHng  —  Requisites  —  Advertising  —  Requisites  —  Credit, 

its  Place  in  Business 45 

CHAPTER   IV 

MANAGEMENT  AND  LABOR 
Importance  of  Human  Factor  in  Business — Cooperation — Per- 
sonality—  Rights  of  Workers  Respected — Duty  of  Em- 
ployees to  Employers  —  Enthusiasm  —  Loyalty  —  Importance 
of  Sympathy  —  Importance  of  Incentive — Methods  of  Han- 
dling Men  —  Driving  —  Leading — Permanence  in  Working 
Force  —  Methods  of  Holding  Men  in  Organization — Pro- 
motion from  the  Ranks  —  Efficiency  and  Health —  Content- 
ment —  Tardiness  —  Punctuality  —  How  Ascertained  — 
Irregularity —  Causes  —  Soldiering  —  How  to  Eliminate  — 
Authority  Clearly  Defined  —  DiscipHne  —  Methods  of  En- 
forcing—  Qualities  Essential  in  Superintendents    ...      69 

CHAPTER  V 

METHODS 
Guesswork  and  Ignorance  in  Business  —  Intelligent  Direction  of 
Work — Old  Method  of  Doing  Work— Wasteful  Effects  — 
How  to  Ascertain  Best  Way  —  Best  Conditions  of  Work  — 
Theory  w.  Practice  —  Time  Study  —  Motion  Study  —  Requi- 
sites for  Finding  Standard  Methods  —  Time  for  Task  —  Im- 
portance of  Rest  —  Standard  does  not  Mean  Perfection  — 
Responsibility  upon  the  Management  —  Adoption  of  Stand- 
ard Methods  —  Supervision  —  Importance  —  Cooperation  of 
Workers — Just  Remuneration  —  Methods  and  Time  Work 

—  Planning  Department  —  Job  Work  —  Efficiency  and  the 
Best  Way 89 


CONTENTS  xi 

CHAPTER  VI 
HIRING   OF   LABOR 

PAGE 

Importance  of  Skilled  Workers — Buying  Machines  z's.  Hiring 
Labor  —  Requisites  for  Efficient  Labor  Force  —  Uncertainty 
of  New  Worker  —  Common  Practice  in  Hiring  Men — Ex- 
perimenting with  Men  —  Evils  of  Constant  Hiring  and  Firing 

—  Requirements  of  a  Place  —  Experts  in  Hiring  Men  —  Mis- 
fits —  How  to  Fill  a  Vacancy  —  Employment  Department  — 
Requisites  for  Selection  of  Workers  —  Fundamentals  for 
Efficient  Work  —  Health — Sight  and  Hearing — Signs  of 
Health  — ■  Ner\^ous  System  —  Barriers  to  Employment  — 
Habits  —  Age  Limit  —  Drifters  —  Personal  Letters  —  Intel- 
ligence—  Thrift  —  Industry — Characteristics  which  Pro- 
mote Efficiency — How  to  Detect — Skill  —  Experience  — 
Limitations  and  Possibilities  of  Men  —  Selection  of  Appren- 
tices—  Card  Record  —  Efficiency  and  the  Buying  of  Labor  .     106 

CHAPTER  VII 

TRAINING 
Changes  from  Industrial  Revolution  —  Training  of  Workers  Neg- 
lected—  Importance  of  Trained  Men — Apprenticeship  System 

—  Characteristics  —  Abuses  —  Modified  Apprenticeship  — 
Sudden  Demand  for  Skilled  Workers  —  Opposition  of  Unions 

—  Industrial  Intelligence  —  Adaptability — Training  in  Best 
Methods — The  Corporation  School  —  Methods  of  Instruc- 
tion—  Instructors  —  Where  Possible — Character  of  Train- 
ing —  Shop  Instruction  —  Practice  Shops  —  Cooperative 
Industrial  Schools  —  Industrial  Evening  Schools  —  Indus- 
trial Training  in  Public  Schools  —  Industrial  Schools  — 
Trade  Schools  —  Trade  Preparatory  Schools  —  Manual  Train- 
ing Schools  —  Vocational  Schools — Best  System  for  Train- 
ing Workers 131 

CHAPTER  VIII 

HABITS 
Habit,  Its  Meaning  —  Instinct  vs.  Habit  —  Nervous  System  and 
Habit  Formation  —  Nerve  Paths  —  Repetition  —  Results  of 


xii  CONTENTS 


Proper  Habits  of  Work  —  Identical  Repetition  —  Habits  of 
Industry — Importance  —  Wastes  —  How  to  Ascertain  Best 
Methods  —  Training  —  Importance — Classes  in  Habit  For- 
mation—  Apprentice  —  Skilled  Worker  — Why  Employees 
Oppose  Changes —  Requisites  for  Changes  —  Conversion  of 
New  Methods  into  Habits  —  Habits  of  Living  —  Of  Eating 

—  Classes  of  Habits — ^Effects  of  Intemperate  Habits  — 
Value  of  Habit  in  Industrial  Society 159 

CHAPTER  IX 

FATIGUE 

Causes  —  Effects — Tower  of  Work  Varies  with  People — Re- 
serve Force  —  Effects  of  Toxic  Impurities  —  Fatigue  and 
Memory  —  Cause  of  Stupidity  —  Efficient  Cycle  —  Sleep  — 
How  Much  is  Necessary  —  Importance  of  Food  and  Health 

—  Relaxation  —  Antidotes  to  Fatigue  —  Rest  Periods  — 
Accidents  —  Effects  of  Dirt,  Dust,  and  Noise — Effects  of 
Speeding  —  Limits  of  Work — Length  of  Working  Day  — 
Training  in  Resisting  Fatigue  —  Real  and  False  Fatigue  — 
Effects  of  Sitting  at  Work —  Methods  of  Conserving  Energy 

—  Wastes  from  Fatigue 178 

CHAPTER  X 

WORKING   ENVIRONMENTS 

Health  and  EfiEiciency  —  Effects  of  111  Health  —  Conservation  of 
Health  —  Importance  —  Environment  'and  Efficiency  — 
Lighting  —  Natural  vs.  Artificial  —  Daylight  —  Windows  — 
Electric  —  Advantages  over  Gas  —  Lamps  —  Overhead  and 
Individual  —  Conservation  of  the  Eye  —  Eyestrain  —  Inju- 
rious Lighting  Conditions  —  Glare  —  Flickering  —  Strong 
Contrasts  —  111  Effects  of  Gas  —  Effects  of  Foul  Air  —  Value 
of  Pure  Air  —  Air  Conditioning  —  Ventilation  —  Natural  — 
Artificial  —  Temperature  —  Air  Circulation  —  Humidity  — 
Dust  —  Varieties  —  Effects  —  Prevention  —  Fumes  and 
Gases  —  Effects  on  Workers  —  Environments  and  Ignorance     199 


CONTENTS  xiii 

CHAPTER  XI 

WELFARE   WORK. 

PAGE 

Drain  of  Sickness  upon  Industry  —  Medical  Department — Func- 
tions —  Emergency  Hospital  —  Physical  Examination  — 
Treating  Ailments  —  Dispensary  —  Home  Environments  — 
Encourage  Proper  Habits  of  Living  —  Medical  Department 
and  Efficiency  —  Nutrition  —  Indigestion  —  Lunches  —  How 
to  Assure  Proper  Lunches — Drinking  Water  —  Sources  — 
Lavatories  —  Individual  Lockers  —  Facilities  for  Baths  — 
Rest  and  Recreation  Rooms  —  Varieties  of  Welfare  Work 

—  Benefit  Associations  —  Educational  Work — Club  House 

—  Monthly  Papers  —  Clubs —  Savings  Banks  —  Vacations  — 
Pensions  —  Prizes  for  Home  Keeping — Business  Motive  in 
Welfare  Work 224 

CHAPTER  XII 

ACCIDENTS 

Classes  of  Accidents  —  Unavoidable  —  Preventable  —  Need  of 
Statistics  —  Losses  from  Accidents  —  Study  of  Accident  Pre- 
vention —  Divisions  —  Causes  —  Ignorance  —  Carelessness 

—  Clothing  —  Standard  Dress  —  Poor  Lighting  —  Cleanli- 
ness —  Breakages  —  Insufficient  Space  —  Slippery  Floors  — 
Alcohol  and  Accidents  —  Fatigue  —  Intervals  of  Rest  — 
Safeguards — Old  View  —  Dangers  in  Oiling  and  Cleaning 
Machinery  —  Protection  of  Eyes  —  Preventive  Spirit  — 
Museum —  Management  and  Accidents  —  Emergency  Room 
First  Aid  —  Employment  of  Children  —  Factory  Inspection 

—  Compensation  in  Accidents  —  Necessary  Measures  in  Ac- 
cident Prevention 252 

CHAPTER   XIII 

FIRE   PREVENTION 

Losses  from  Fire  —  Reasons  for  Excessive  Fire  Losses  —  Func- 
tions of  Fire  Prevention  —  Chemistry  of  Fire  —  Combustion 

—  Spontaneous     Combustion  —  Favorable     Conditions  — 


xiv  CONTENTS 


Causes  of  Fire  —  Matches  —  Smoking  —  Gas-jets  —  Oil 
Lamps  —  Precautions  in  Electric  Wiring  —  Methods  of  Heat- 
ing—  Dangers  in  Open  Spaces  —  Dangers  in  Dust — Auto- 
matic Fire  Alarms  —  How  to  Install  —  Manual  Alarm  Boxes 
— Fire  Patrols  —  Automatic  Sprinklers  —  Operation  —  Fire 
Pails  —  Chemical  Extinguishers  —  Standpipes  —  Fire  Es- 
capes —  Philadelphia  Fire  Tower  —  Fire  Walls  —  Fire 
Drills  —  Fire  Protection  as  a  Science 284 


CHAPTER  XIV 

WAGES 

Importance  of  the  Wage  Question  —  Requisites  for  its  Solution 

—  Parties  to  Wage  Problem  —  Various  Systems  of  Pay  — 
Time  Wages  —  How  Fixed  —  Disadvantages  —  Individual 
Records  —  Piece  Rates  —  Rate  Cutting  Cause  of  Trouble  — 
Guesswork —  Rate  Fixing  —  The  Task  and  the  Rate  —  How 
to  Establish  a  Just  Rate  —  Essentials  —  Duties  of  the  Em- 
ployee —  Classes  of  Workers  —  Health  Precautions  — 
Workers'  Share  in  Fixing  Rates  —  Profit  Sharing — Method 
of  Distributing  Profits  —  Disadvantages — Contract   System 

—  How  it  Operates 314 

CHAPTER  XV 

SCIENTIFIC    PIECE-RATE   SYSTEMS 

Halsey  Premium  Plan  —  How  it  Operates  —  Ascertaining  of 
Standard  Time  —  Precautions  —  Rowan  Premium  System  — 
How  it  Operates  —  Gantt  Bonus  System  —  How  Standard 
Time  is  Ascertained  —  Instructions  —  Elimination  of  Guess- 
work —  Soldiering  Eliminated  —  Health  Precautions  —  The 
Bonus  —  Reward  for  Foremen  —  Differential  Piece  Rate 
System  —  Requisites  —  Instruction  Cards  —  Precautions  in 
Fixing  Tasks  —  System  in  Operation  —  Task  Idea  in  Day 
Work  —  Emerson  Efficiency  System  —  System  in  Operation 

—  Piece  and  Job  Work — .Remuneration  Proportionate  to 
Output 340 


CONTENTS  XV 

CHAPTER  XVI 
ORGANIZED  LABOR  AND  EFFICIENCY  METHODS 

PAGE 

Trade  Union,  Its  Meaning — Unscrupulous  Leaders  —  Exploita- 
tion Unjust — Progress  and  Elimination  of  Work — Em- 
ployees Suspicious  of  Employers  —  Opposition  to  New  Ma- 
cHihes  —  Effects  on  Labor  —  Wages  and  Output —  Efficiency 
and  Protection  of  Workers  —  Intellectual  Development  — 
Care  of  Aged  Workers  —  Pensions  —  Opposition  to  Piece 
Rate  —  Proper  Piece  Rates  Benefit  Labor  —  Forms  of  Wage 
Bargaining  —  Individual  —  Collective  —  Union  Demands, 
Based  on  Guess  —  Aims  of  Unionism — Ignorance  of  Mean- 
ing of  Efficiency      — ~-        -      ~-^-       ^     22^ 


ECONOMICS  OF  EFFICIENCY 

CHAPTER  I 

The  Economic  Need  of  Efficiency 

This  is  the  age  of  industry.  Industrial  achieve- 
ment is  the  aim  and  the  goal  of  all  civilized  nations. 
National  progress  and  growth  are  based  upon  industrial 
industrial  progress.  Industrial  advancement  efficiency,  a 
has  been  rapid,  and  to-day  the  world  is  progres-  ^®^  ^^^^^' 
sing  with  greater  rapidity  than  ever  before.  Developments 
and  improvements  in  every  niche  of  industrial  life  follow 
one  another  in  rapid  succession.  They  are  the  rewards 
of  tireless  industry,  of  superior  ability,  and  of  genius. 
American  genius  is  second  to  none  in  the  world.  It  has 
devoted  itself  chiefly  to  conquering  the  forces  of  nature, 
devising  labor-saving  machinery  and  devices,  and  making 
improvements  in  facihties  of  transportation  and  of 
transmission  of  intelligence.  The  last  few  years  have 
opened  a  new  field,  and  new  problems  have  presented 
themselves  for  American  genius  to  solve.  This  new  field 
is  industrial  efficiency.  Its  borders  have  hardly  been 
touched,  and  American  genius  must  be  directed  to  its 
domains.  If  so,  the  revelations  which  will  result  will  be 
as  astonishing  as  those  resulting  from  the  industrial  revo- 
lution of  the  eighteenth  century.  American  genius  has 
not  failed  in  the  past,  and  will  not  in  this  case.  The 
future  promises  in  the  new  field  of  efficiency,  industrial 
improvements  and  developments  which  will  make  the 


2  ECONOMICS   OF   EFFICIENCY 

industrial  progress  and  growth  of  the  twentieth  century 
greater  than  the  phenomenal  record  of  the  nineteenth. 

Manufactures  have  developed,  in  less  than  two  cen- 
turies, from  mere  hand  and  household  industries  to  those 
Evolution  of  machine  and  factory.  For  thousands  of 
of  manufac-  years  previous,  goods  for  the  satisfaction  of 
turing.  Q^Y  the  wants  of  man  were  made  in  households, 

or  in  simple  workshops  adjacent  thereto.  During  the 
early  part  of  the  eighteenth  century,  the  worker  per- 
formed his  work  in  his  own  home,  where  he  provided  raw 
material,  owned  his  own  tools,  furnished  the  motive  power, 
which  was  his  muscles,  and  was  his  own  master.  By  the 
middle  of  the  century,  many  changes  in  the  industrial 
system  had  taken  place,  and  considerable  capital  was 
used  in  manufacture.  Merchants  grew  rich  by  fur- 
nishing raw  material  to  workers,  paying  them  at  piece 
rates  to  produce  finished  articles,  and  selling  these  in 
markets.  By  this  time,  many  experiments  and  successful 
attempts  had  been  made  to  economize  in  production 
by  the  appHcation  of  capital  through  labor-saving  devices 
and  machines.  But  the  great  mechanical  inventions 
took  place  in  the  period  from  1 760-1 790.  This  was 
followed  by  the  discoveries  of  the  application  of  steam 
power,  and  commencing  with  1830,  with  marked  improve- 
ments in  faciHties  of  transportation  on  land  and  water. 

The  various  inventions  introduced  so  many  changes  in 
the  industrial  system  that  the  process  of  change  is  called 
j^  the  Industrial  Revolution.     The  workers  were 

ment  under  called  upon  to  attend  machines,  and  to  work 
the  factory  in  workshops  owncd  by  the  employer.  The 
system.  grouping  of  laborers  and  machines  in  buildings 
for  the  purpose  of  production  is  known  as  the  factory 
system.  The  factory  and  not  the  home  became  the  unit 
of  production.  With  the  increase  of  capital  and  the  im- 
provement of  machinery,  the  factory  made  it  possible 


THE   ECONOMIC   NEED   OF   EFFICIENCY       3 

to  manufacture  goods  in  larger  quantities,  and  of  a  more 
varied  nature.  New  improvements  in  facilities  of  trans- 
portation opened  larger  markets,  and  to  meet  the  in- 
creased demand,  production  on  a  larger  scale  followed. 
The  development  under  the  factory  system  made  the 
modern  business  enterprise  possible. 

The  factory  system  with  its  extensive  use  of  machin- 
ery, power,  and  capital,  combined  with  extensive  divi- 
sion of  labor,  introduced  new  problems  of  ad-  ^he  factory 
ministration.  The  small  business  enterprise  system  and 
with  its  simple  organization  and  methods,  ^*^°^' 
so  characteristic  of  the  domestic  system,  gave  way  to 
the  large  business  unit  with  its  compHcated  organization 
and  complex  methods.  Intensive  organization  became 
a  necessity,  and  the  independent  worker  of  the  domestic 
system  became  a  part  of  an  organization  under  the  guid- 
ance of  a  new  official,  the  manager.  A  clear  and  definite 
line  was  gradually  drawn  between  managerial  ability 
and  labor.  The  laborer  became  a  specialist,  and  was 
deprived  of  all  responsibility  except  that  of  doing  effi- 
ciently the  task  assigned  him.  The  present  Labor  and 
industrial  system  has  been  a  development  managerial 
from  the  simple  organization  to  the  complex,  ^^^^^y- 
a  process  of  evolution.  Each  stage  of  the  development 
has  been  attended  by  labor  problems,  social  difficulties, 
and  class  conflicts.  The  inattention  of  employers  to 
the  new  problems  has  been  the  chief  cause  of  the  numer- 
ous clashes  between  workers  and  employers.  Many 
of  the  clashes  and  much  of  the  antagonism  which  now 
exists  between  the  two  great  factors  of  production  could 
h.ave  been  prevented  if  employers  had  recognized  from 
the  beginning  the  proper  place  of  labor  in  our  industrial 
system. 

The  nineteenth   century  has  been  frequently  called 
the  century  of  the  machine.     Successful  industrial  man- 


4  ECONOMICS  OF   EFFICIENCY 

agement  was  concerned  largely  with  obtaining  greater 
efficiency  through  two  sources :  firstly,  the  acquiring  of 
Progress  ^  more  highly  efficient  plant  through  more 
and  efficient  buildings  and  arrangement,  and  sec- 

markets,  ondly,  the  acquiring  of  more  improved  and 
specialized  equipment  for  the  different  processes.  Pro- 
duction was  greatly  increased  which  necessitated  more 
extensive  markets.  Manufacturers  reahzed  that  indus- 
trial development  was  dependent  upon  markets.  The 
question  of  markets  has  always  been  a  fundamental  one 
in  industrial  progress.  Improved  machinery  and  produc- 
tion on  a  larger  scale  drove  the  manufacturer  to  extend 
his  field  from  the  locahty  to  the  nation,  and  further  im- 
provements made  more  extended  markets  an  absolute 
necessity.  With  the  entrance  of  our  commodities  into 
the  world's  markets,  competition  became  more  intense, 
and  the  question  of  costs  became  more  important,  but 
during  the  nineteenth  century,  the  average  employer 
in  his  efforts  to  lower  costs  centralized  his  attention 

upon  buildings,  equipment,  machinery,  and 
of^^sSesr  inethods.     Near  the  close  of  the  century,  a  few 

more  enterprising  employers  had  their  atten- 
tion attracted  to  the  human  element,  the  most  important 
factor  in  production,  and  this  attraction  is  the  beginning 
of  a  new  science  of  business,  the  science  of  efficiency, 
which  is  a  secure  and  sound  foundation  for  further 
growth  and  greater  industrial  progress. 

It  is  astonishing  that  it  was  hardly  more  than  a  quarter 
of  a  century  ago  that  employers  realized  that  men  and 
Three  prob-  "^^^  money  were  the  determining  factors  in 
lems  in  pro-  commercial  and  industrial  undertakings, 
duction.  Three  important  problems  enter  into  produc- 
tion, the  material,  the  machine,  and  the  labor.  The 
keen  competition  arising  from  entering  foreign  markets 
drove  manufacturers  to  tax  their  ingenuity  to  devise 


THE   ECONOMIC   NEED   OF   EFFICIENCY       5 

methods  for  lowering  costs.  Attention  first  turned  to 
improved  machines,  equipment,  and  economies  arising 
from  large-scale  production.  The  closer  study  de- 
manded by  increasing  competition  made  clear  the  limi- 
tation upon  machines  and  equipment.  Atten-  Attention  to 
tion  was  directed  to  the  labor  factor,  and  busi-  the  human 
ness  men  then  recognized  the  importance  of  the  ^^^*o^- 
human  factor.  This  factor,  so  long  neglected,  has  come 
into  prominence  as  the  one  to  be  depended  upon  to  lower 
costs,  make  possible  successful  competition,  and  pave 
the  way  for  greater  industrial  growth  and  expansion. 
The  human  factor  is  the  most  difficult  one  in  production, 
and  the  most  important  in  the  keen  competitive  activity 
of  the  present  industrial  struggle. 

Machines  have  been  given  special  study  since  the  in- 
troduction of  the  factory  system,  but  the  human  factor 
has   been   neglected.     Machines   depend   for  Human 
their  output  upon  the  labor  attending  them,  factor  long 
and  the  worker  does  the  real  work  of  industry,  neglected. 
Why  should  he  not  be  studied  to  ascertain,  as  in  the 
case  of  machines,  if  wastes  exist,  or  if  better  methods 
can  be  devised  for  doing  work,  so  as  to  increase  the  out- 
put with  the  same  physical  and  mental  exertion  ?     Eco- 
nomic necessity  in  meeting  competition  drove  manu- 
facturers to  pay  attention  to  the  human  factor,  and  to 
give  it  closer  study  in  order  to  devise  methods  of  lower- 
ing costs,  so  as  more  successfully  to  compete  in  home 
and  distant  markets. 

Manufacturers  were   amazed   at   the   extent   of   the 
wastes  which  were  found  in  their  plants.     Wastes  of 
material,  time,  and  energy  were  found  every- 
where.    A  prominent  manufacturer  declared  wastes  ° 
that  they  were  getting  only  about  50  per  cent 
of  the  abihty  of  workmen  in  their  factory.     Another 
stated  that  few  shops  produced  more  than  60  per  cent 


6  ECONOMICS   OF   EFFICIENCY 

of  the  work  that  it  would  be  possible  for  them  to  pro- 
duce with  the  same  working  force  and  the  same  physical 
Problem  to  equipment.  The  chief  problem  which  arose 
eUminate  was  how  to  eHminate  these  wastes.  How  can 
wastes.  g^j-^  industrial  country  hampered  with  the  pres- 

ence of  wastes  compete  with  one  with  the  wastes  par- 
tially or  nearly  wholly  eliminated  ?  It  is  impossible. 
It  is  a  dollars-and-cents  proposition,  and  when  manu- 
facturers reahze  this,  they  will  pay  heed  to  the  condi- 
tions existing  in  their  plants,  and  make  endeavors  to 
ehminate  as  much  waste  as  possible.  The  goal  is  the 
obtaining  of  the  greatest  possible  output  of  the  highest 
quahty,  and  with  the  least  expenditure  of  material, 
time,  and  energy,  but  at  the  same  time  not  in  any  way 
impairing  the  health  of  the  workers.  The  work  of 
studying  conditions  of  material,   machines,   and  labor 

to  ascertain  methods  for  reaching  the  goal  and 
tii^goS^^'      ^^  putting  the  methods  into  practice  is  called 

efficiency.  Efficiency  is  the  goal  in  industry. 
The  nation  which  nearest  approaches  this  goal  in  its 
industrial  and  business  pursuits  will  be  the  one  which 
will  lead  the  van  of  industrial  nations.  Efficiency  enters 
every  field  of  business  activity  and  is  not  confined  to 
manufacturing  enterprises.  Efficiency  methods  will 
make  this  nation  the  greatest  of  all  industrial  nations, 
and  in  an  enterprise  will  be  the  greatest  guarantee  of 
success. 

Human  activity  is  the  most  valuable  of  all  factors 
which  enter  into  our  business  life,  yet  until  recently, 
Greatest  of  l^^s  than  two  decades  ago,  Httle  or  no  system- 
all  wastes,  atic  thought  was  given  to  the  protection  and 
that  of  labor,  ^-j^q  conservation  of  the  human  element  in  busi- 
ness. The  greatest  of  all  wastes  is  that  of  labor.  It  is 
all  the  more  serious  because  it  is  the  human  factor  which 
is  being  wasted,  and  this  factor  has  always  been,  and 


THE   ECONOMIC  NEED   OF  EFFICIENCY       7 

will  always  be,  the  greatest  factor  in  every  branch  of 
business  activity.  What  a  saving  would  result  to  this 
nation  if  we  could  eliminate,  say,  10  per  cent  of  the  wastes 
of  the  human  element,  and  how  much  it  would  mean 
to  laborers  if  we  could  increase  the  percentage  to  forty ! 
Such  saving  would  not  demand  a  greater  expenditure 
of  energy,  but  a  better  directed  energy.  Manufacturers 
would  also  profit,  as  it  would  lower  their  costs  of  pro- 
duction, and  would  place  them  in  a  position  more  suc- 
cessfully to  compete  in  foreign  markets. 

The  elimination  of  wastes  is  the  greatest  problem  in 
every  form  of  business  activity.     Wastes  are  found  in 
every    factor    of    production.     The    greatest 
exist  with  the  human  factor,  and  the  most  of^effidency^ 
difhcult  place  to  save  waste  is  with  this  factor. 
This  presents  the  most  serious  and  the  most  difficult 
problem  confronting  business  men.     The  new  study  of 
efficiency  is  concerned  with  the  elimination  of  all  wastes, 
but  its  most  difficult  task  is  the  elimination  of  the  wastes 
of  the  human  factor.     So  overshadowing  is  the  human 
factor  that  its  study  is  the  essence  of  efficiency.     It 
is  a  dollars-and-cents  proposition,  and  is  of  vital  interest 
to  every  one  engaged  in  business  activity.    Re-  conserva- 
cently,  the  American  people  have  been  aroused  tion  of 
to  the  need  of  conservation.     Attention  was  workers, 
aroused,  and  was  focused  upon  wastes  of  forests,  rivers, 
mines,  and  farm  lands.     No  attention  was  given  to  the 
greatest  waste,  the  waste  of  human  beings,  more  terrible 
and  appalling  than  all  the  others.     This  was  unknown, 
and  people  were  in  ignorance  of  its  extent,  until  necessity 
drove  the  business  man  to  study  the  human  factor  in 
order  to  discover  means  of  lowering  costs. 

The  most  valuable  resources  of  a  nation  are  its  own 
people,  and  it  is  only  recently  that  employers  are  real- 
izing this.     Human  hands  and  brains  furnish  the  bases 


8  ECONOMICS  OF  EFFICIENCY 

of  great  industrial  growth,  and  are  the  foundation  upon 
which  our  future  industrial  extension  will  be  based. 
The  most  valuable  possessions  of  a  workman 
should  c(m-  ^^^  ^is  health,  strength,  and  intelligence, 
serve  as  The  Conservation  of  health  and  strength,  the 
Td^c  prolongation  of  working  life,  and  the  preven- 

tion of  disease  are  problems  which  affect 
the  nation  at  large,  and  every  employer  in  particular. 
Human  life  is  gradually  being  recognized  as  a  business 
asset.  Employers  are  realizing  the  fact  that  it  is  a 
cold  business  proposition,  and  that  it  pays  to  conserve 
the  health  and  the  strength  of  employees.  It  is  a  func- 
tion of  this  industrial  nation  to  conserve  as  well  as  to 
produce.  Wastes  should  be  eliminated.  Goods  should 
be  produced  in  increasing  quantities  and  at  lower  costs. 
Production  should  continue  with  the  greatest  possible 
saving  of  wastes,  with  the  best  utilization  of  natural 
resources,  labor,  and  capital,  and  with  the  greatest 
conservation.  Business  men  should  reahze  that  econo- 
mic conditions  have  a  great  effect  upon  business  activi- 
ties, and  the  efficiency  with  which  they  are  performed. 
It  is  the  economist  who  in  the  future  will  prove  the 
greatest  friend  of  business  men  in  solving  the  impor- 
tant question  of  efi&ciency.  Business  which  is  con- 
ducted by  one  part  of  society  at  the  expense  of  another 
cannot  be  justified,  and  will  not  be  tolerated  under  the 
new  efficiency  movement. 

Labor  should  be  conserved,  directed,  and  given  Just 
and  fair  remuneration.  Efficiency  demands  this,  and 
Efficiency  ^^  soon  as  business  men  realize  that  exploita- 
not  expioi-  tion  does  not  pay,  and  that  efficiency  does,  the 
tationpays.  relations  between  employers  and  employees 
will  be  less  antagonistic,  and  both  will  find  it  to  their 
advantage  to  work  for  their  common  interests.  Our 
industrial  progress  will  to  a  large  extent  depend  upon  our 


THE   ECONOMIC   NEED   OF  EFFICIENCY       9 

conforming  to  the  fundamental  principles  of  efficiency. 
It  is  only  during  recent  years  that  this  has  been  realized 
by  business  men.  This  realization  and  efforts  to  ascer- 
tain and  follow  these  fundamental  principles  is  a  dollars- 
and-cents  proposition,  and  as  such  appeals  particularly 
to  business  men.  The  chief  aim  of  this  book  is  to  open 
the  eyes  of  business  men  to  the  underlying  principles  of 
efficiency,  to  educate  them  to  the  importance  of  these 
principles,  and  to  explain  their  methods  and  workings 
in  such  a  way  that  all  business  men  will  profit. 

With  the  ignorance  and  the  wastefulness  with  which 
our  business  was  conducted  throughout  the  nineteenth 
century,  one  marvels  at  our  industrial  growth  j^^^^^^ 
and  expansion.  It  is  not  long  ago  that  each  methods  of 
workman  ground  his  own  tools,  and  ran  ma-  the  last 
chines  at  rates  that  seemed  to  him  suitable.  *^®^"'y- 
No  worker  knew  if  work  could  be  done  better  or  faster, 
because  he  was  supposed  to  go  ahead  with  his  task,  and 
not  to  stop  and  try  experiments.  Skilled  mechanics 
learned  their  trades  by  observing  others  work,  taking 
what  movements  they  thought  necessary,  and  doing 
whatever  appeared  to  their  liking.  The  object  was  to 
learn  to  do  a  certain  task,  and  little  heed  was  paid  to 
the  question  whether  or  not  it  was  the  best  method. 
Each  man  was  supposed  to  be  the  judge  of  his  own 
speed.  The  average  man  simply  worked  fast  enough 
to  hold  his  position,  and,  if  possible,  to  soldier  and  not 
be  discovered.  No  attention  was  paid  to  protecting 
workers  from  machines,  as  they  were  supposed  to  keep 
out  of  the  way,  and  if  one  was  injured,  it  was  usually 
blamed  to  the  carelessness  of  the  worker,  and  not  to 
the  negligence  of  the  employer.  With  these  conditions 
prevailing  in  the  average  business  plant,  is  it  a  wonder 
that  the  progressive  business  man  marvels  at  our  in- 
dustrial growth  and  expansion  during  the  last  century  ? 


lo  ECONOMICS  OF   EFFICIENCY 

Management  was  lax,  as  everything  was  based  largely 
upon  guesswork.  There  was  little  knowledge  of  the 
general  principles  underlying  organization,  and 
nTe^hods  of  ^^e  well-organized  business  was  the  exception, 
business  Little  heed  was  paid  to  system,  and  the  average 
manage-  manager  kept  the  details  of  the  business  in  his 
head.  He  was  supposed  to  look  after  details, 
as  well  as  important  matters,  and  to  get  his  information 
by  observation.  He  laughed  at  system,  and  thought 
it  hindered  rather  than  fostered  success.  The  only 
guide  as  to  whether  or  not  the  business  was  prospering 
was  the  bank  account,  the  ability  to  meet  obliga- 
tions. No  knowledge  existed  as  to  costs,  and  no  system 
of  cost  finding,  or  cost  accounting  was  found.  In  re- 
gard to  costs,  everything  was  based  on  guess.  Guess, 
haphazard,  chance,  and  luck  were  the  bases  of  conduct- 
ing the  average  business,  until  recent  years.  Such 
methods  work,  if  coupled  with  judgment  and  a  more 
or  less  large  margin  between  selling  and  cost  prices. 
With  keen  competition  and  small  margins  they  fail. 
They  must  be  eliminated,  and  their  places  taken  by  cost- 
finding  systems,  by  organization,  and  by  knowledge  in 
dealing  with  men,  materials,  and  machines. 

The  expression  ^'Knowledge  is  power"  is  one  which 
has  been  handed  down  from  antiquity.  Knowledge  is 
Accurate  ^^  absolute  prerequisite  of  efficiency,  but 
knowledge  knowledge  itself  is  of  little  avail  in  obtaining 
and  greater  efficiency  and  business  success.     The 

machines.  pi-Qpgj.  ^se  of  knowledge  is  what  is  needed  in 
business.  Efficiency  is  obtained  by  first  acquiring  knowl- 
edge, and  then  making  proper  use  of  that  knowledge. 
Knowledge  as  regards  machines  and  equipment  has  been 
appKed  with  varying  success.  The  latter  part  of  the 
nineteenth  century  showed  great  development  in  the 
acquiring  and  the  applying  of  knowledge  that  obtained 


THE   ECONOMIC   NEED   OF   EFFICIENCY     ii 

greater  results  from  machines  and  equipment.  The 
appHcation  of  exact  knowledge  was  during  the  last 
century  confined  to  mechanical  equipment.  Little 
was  done  to  obtain  a  knowledge  of  the  human  factor, 
the  greatest  factor  in  production.  The  neglect  of  this 
factor  was  due  more  to  ignorance  on  the  part  of  the 
employer  than  to  anything  else.  Accurate  knowledge 
should  be  obtained  of  the  human  factor  in  the  various 
phases  of  business  activity,  and  applied  so  as  to  obtain 
efhcient  results.  The  appHcation  of  accurate  knowledge 
to  the  human  factor,  as  well  as  to  the  other  factors  of 
production,  reduces  human  effort  to  a  minimum  and 
increases  production  with  lessened  exertion.  The  great 
problem  confronting  every  business  man  is  to  furnish 
daily  the  prescribed  quantity  and  quahty  of  work  in 
all  its  varieties  by  the  most  efficient  methods,  and  with 
a  minimum  amount  of  capital  locked  up  in  work. 

Men  should  be  studied  as  well  as  machines.     Methods 
of  modern  science  should  be  appHed  to  the  acquiring 
and  the  applying  of  accurate  knowledge  re-      . 
garding  the  human  factor  in  business.     The  knowledge 
value  of  scientific  knowledge  in  industry  has  applied    to 
long  been  recognized,  but  the  idea  of  apply-  factor^°^^° 
ing  it  to  ascertain  what  a  man  can  do  is  new. 
The  characteristics  of   the  human  element  should  be 
carefully  studied  and  analyzed.     Much  has  been  done 
during  the  past  decade,  but  the  study  is  as  yet  in  its 
infancy.     With  its  present  beginning,  much  is  to  be  ex- 
pected from  the  next  few  years.     Many  results  have 
been  obtained,  but  these  are  slight  compared  with  what 
will  follow.     The  study  will  not  only  benefit  large  em- 
ployers, but  all  employers.     The  greatest  benefit  will 
come  to  the  laboring  class  in  general,  as  it  will  assure 
them  proper  working  conditions,  just  wages,  and  higher 
standards  of  living. 


12  ECONOMICS  OF  EFFICIENCY 

Accurate  knowledge  should  replace  rule-of-thumb 
practices,  and  everything  should  be  done  intelHgently 
and  nothing  left  to  chance  or  ignorance, 
knowie^dge  Careful  study  and  investigation  of  the  human 
and  the  factor  in  all  its  phases  should  be  made  for  the 
human  purpose  of  obtaining  exact  knowledge.     Ex- 

periments for  the  purpose  of  discovering  the 
best  methods  and  ways  for  shaping  action  should  be 
conducted  with  the  greatest  care.  Accurate  knowledge 
discloses  wastes,  but  it  requires  further  action  to  elimi- 
nate wastes.  It  gives  conditions  most  conducive  to 
health  and  work,  but  it  remains  for  the  employer  to 
apply  the  knowledge,  and  to  make  the  working  con- 
ditions the  best  possible.  Accurate  knowledge  dis- 
closes the  best  methods  for  the  performance  of  a  task, 
but  training  and  cooperation  are  necessary  to  put  these 
into  practice.  Accurate  knowledge  tells  the  best  ma- 
terials, machinery,  tools,  and  equipment  for  work. 
Accurate  knowledge  discovers  how  best  to  conserve 
health  and  strength,  and  employers  should  be  guided 
by  such  in  looking  after  the  health  of  their  employees. 
Health  is  a  prerequisite  of  efficiency,  and  everything 
which  impairs  health  impairs  efficiency.  Employers 
should  care  for  employees  outside  of  the  plant,  as  well 
Requisites  ^^  while  working.  The  obtaining  of  accurate 
for  accurate  knowledge  demands  a  careful  analysis  of  the 
knowledge,  gffgct  of  working  conditions,  habits,  and. work 
in  its  various  phases  upon  the  worker.  It  demands  a 
careful  study  of  materials,  machines,  and  equipment, 
so  as  to  ascertain  that  which  is  best  suited  for  perform- 
ing the  work  to  be  done. 

Success  depends  upon  the  care  taken  in  obtaining 
accurate  knowledge,  and  upon  the  use  which  is  made 
of  it.  A  plant  should  be  made  to  work  under  condi- 
tions, as  near  as  possible,  to  what  accurate  knowledge 


THE   ECONOMIC  NEED   OF  EFFICIENCY     13 

demands  they  should  be.  Actual  conditions  should  be 
studied  and  changed  to  meet  the  demands  of  accurate 
knowledge.  The  conditions  existing  in  thou-  success  and 
sands  of  plants  are  the  result  of  ignorance,  accurate 
and  much  of  the  waste  is  due  to  the  same  cause,  ^^^^owiedge. 
The  obtaining  and  the  applying  of  knowledge  obviates 
guesswork,  and  eliminates  much  of  the  wastes  which 
at  present  exist  in  so  many  of  our  industrial  plants. 

Each  manufactured  commodity  found  in  a  market  is 
the  work  of  many  hands.     The  development  of  ma- 
chinery made  possible  production  on  a  large 
scale  and,  in  its  turn,  greater  division  of  labor  ^jent  of" 
to  meet  increasing  industrial  needs.     Division  machinery 
of  labor  means  the  division  of  the  processes  of  ^J^JaW^^^" 
making  a  commodity  into  a  number  of  sepa- 
rate processes,  and  intrusting  the  worker  with  the  per- 
formance of  one  or  two  of  these.     A  visit  to  any  large 
factory  shows  a  score  or  more  separate  processes  in  the 
making  of   a   single   commodity,   which   formerly  was 
made   entirely  by   a   single  individual.     For  instance, 
in  the  making  of  a  ready-made  coat  there  are  thirty- 
nine  distinct  processes,  and  in  the  making  of  a  pair  of 
men's   brogan   shoes,   no   less   than   eighty-four.     Pro- 
duction on  a  large  scale  and  the  extensive  use  of  ma- 
chinery make  possible  an  effective  utilization  of  every 
kind  of  individual  capacity. 

The  proper  placing  of  labor  and  its  proper  guidance 
and  training  avoid  waste  of  strength,  and  unite  hand- 
work and  brainwork.     Division  of  labor  causes  gj-ains  and 
unskilled  work  to  be  performed  by  unskilled  ability  to  do, 
workers,  and  skilled  by  experts.     Minute  divi-  requisite  in 
sion  of  labor  or  high  specialization  is  a  promi-     '^^^^®^^- 
nent   factor  in  our  industrial   system.     The    all-round 
worker  has  been  displaced  by  the  more  or  less  special- 
ized  one.     Chance,    luck,    and   guesswork   of   the   old 


14  ECONOMICS   OF   EFFICIENCY 

regime  should  be  replaced  by  skill,  the  application  of 
accurate  knowledge,  and  efficiency.  Specialization  in 
industry  and  subdivision  of  labor  assume  a  new  im- 
portance. Brawn  and  muscle  should  give  way  to  skill 
and  intelligence.  Brains  and  ability  to  do,  and  not 
stores  of  inapplicable  knowledge,  are  the  great  needs 
of  our  industrial  system.  Inventions  and  improve- 
ments in  endless  succession  are  increasing  the  effective- 
ness of  business  activity.  They  are  Hkewise  increasing 
daily  the  demand  for  thinking  men,  —  men  with  the 
skill  and  the  ability  to  perform  the  work  necessary  for 
rapid  industrial  development.  The  necessity  for  econ- 
omy in  lowering  costs  in  production  has  developed 
intricate,  automatic,  and  highly  specialized  machinery 
to  a  remarkable  degree,  and  is  responsible  for  the  present 
specialization  and  subdivision  of  labor. 

The  underlying  principle  of  specialization  is  division 
of  labor,  but  it  is  broader  than  the  ordinary  meaning 
c«^.;oi,vo      of  the  term  "division  of  labor,"  because  it  is 

Specializa-  ' 

tion  in  its  applied  to  machmes  and  manufacturmg  as 
broader  ^gH^  ^  quarter  of  a  century  ago  it  was  com- 
meaning.  ^^^  ^^  ^^^  ^  plant  making  many  forms  of 
commodities.  As  markets  were  extended,  and  com- 
petition became  keener,  it  was  found  that  it  was  more 
profitable  to  concentrate  production  on  fewer  lines  of 
work.  The  extended  markets  made  it  possible  to  dis- 
pose of  large  quantities  of  product.  The  lines  were 
narrowed  and  specialization  assumed  another  form. 
Formerly,  the  factory  made  within  its  walls  all  the 
parts  of  the  article  produced.  Later,  manufacturers 
found  that  they  could  buy  many  parts  more  cheaply 
than  they  could  make  them.  Enterprising  manufac- 
turers soon  found  that  if  they  would  devote  their  time 
to  manufacturing  bolts,  screws,  tools,  etc.,  and  pro- 
duce them  in  large  quantities^  they  could  produce  and 


THE   ECONOMIC   NEED   OF  EFFICIENCY      15 

sell  at  a  profit  to  manufacturers  using  them  in  small 
quantities,  at  a  price  less  than  the  consuming  manu- 
facturer could  produce.     Formerly,  factories  were  in  a 
large  measure  self-sufhcient,  with  few  excep-  specializa- 
tions producing  every  part  of  an  article,  as  tioninthe 
well  as  the  tools  used  in  its  production,  while  ^^^^°^^- 
to-day,  as  a  result  of  growing  specialization,  it  is  hard 
to  find  a  factory  that  is  self-sufficient.     Every  factory 
depends  upon  many  others,  not  only  for  raw  materials, 
but  also  for  its  tools  and  many  parts  of  the  article  or 
articles  produced. 

As  competition  became  keener,  and  the  business  unit 
increased  in  size,  the  tendency  towards  greater  special- 
ization in  the  manufacturing  plant  constantly  speciaiiza- 
grew.  Plants  have  not  only  become  more  tion  in  ma- 
specialized,  but  also  machines  and  tools.  The  cWnes  and 
tendency  towards  greater  specialization  is  as 
great  with  machines  and  tools  as  it  is  with  plants  and 
labor.  In  a  big  manufacturing  plant,  many  of  the 
tools  and  machines  are  especially  designed  for  their 
particular  functions  and  no  others.  The  increased 
specialization  of  tools,  machines,  and  plants  has  nar- 
rowed the  work  as  compared  with  the  old  system.  It 
follows  that  it  tends  to  narrow  the  field  of  action  of  the 
men  employed  in  a  plant.  A  few  years  ago,  a  shoe- 
maker measured  his  customer's  foot  and  made  the  shoe, 
but  to-day,  with  specialized  machinery,  the  making  of 
a  pair  of  brogan  shoes  is  divided  into  eighty-four  differ- 
ent processes.  Shoemaking  is  confined  chiefly  to  the 
mending  of  shoes,  and  its  place  as  a  trade  has  disap- 
peared, and  instead  there  has  arisen  a  highly  specialized 
industry.  Markets  limit  specialization.  Specialization 
depends  upon  a  large  market,  as  a  large  product  must 
be  sold  in  order  to  make  specialization  possible. 

SpeciaKzation  of  plant,   machinery,   and  labor  is   a 


i6  ECONOMICS   OF  EFFICIENCY 

feature  of  our  present-day  industrial  system.  Com- 
modities are  produced  more  cheaply  than  under  the  older 
Effects  of  methods,  and  this  fact  has  attracted  the  at- 
speciaiiza-  tention  of  the  manufacturer.  The  influence 
tionon  of  the  new  methods  has  been  the  narrowing 
of  the  activity  of  the  worker,  and  the  requir- 
ing of  more  special  skill  of  hand  and  head.  It  confines 
human  activity  to  a  narrower  field,  and  has  caused  the 
disappearance  of  the  old-time,  all-round  mechanic.  The 
concentration  of  efforts  either  mental  or  physical  upon 
a  narrower  field  of  activity  increases  skill  and  output. 
The  extensive  growth  of  our  business  unit  and  the  high 
degree  of  specialization  in  our  plants  made  it  difficult 
for  one  man  to  know  and  to  retain  a  grasp  of  any  one 
field.  Specialization  increases  skill,  dexterity,  and  speed 
of  workers.  The  worker  of  to-day  is  more  highly  skilled, 
and  far  more  productive  in  the  few  operations  that  he 
performs,  than  was  his  many-sided  predecessor,  the  all- 
round  mechanic. 

The  simplification  of  processes,  the  specialization  of 
machinery,  and  the  consequent  division  of  labor  are 
The  dangers  consequences  of  the  modern  factory  system, 
of  special-  The  necessity  of  lowering  costs  of  production 
ization.  developed    automatic    and    specialized    ma- 

chinery to  a  remarkable  degree,  and  is  responsible  for 
the  present  degree  of  division  of  labor.  The  direct 
result  is  the  specialist  laborer,  who  performs  only  one 
of  the  many  operations  in  the  production  of  a  single 
article.  Specialization  is  a  permanent  factor  in  in- 
dustry, and  is  an  economic  necessity  in  our  struggle 
for  markets.  It  is  carried  in  many  cases  to  such  a 
degree,  that  if  precautions  are  not  taken,  it  becomes  a 
menace  to  the  worker.  It  is  in  cases  where  operations 
are  repeated  rapidly  and  require  little  skill  or  mental 
effort,  but  great  concentration  of  attention,  that  the 


THE   ECONOMIC   NEED   OF  EFFICIENCY     17 

menace  appears.  In  such  cases,  it  requires  the  careful 
attention  of  employers,  and  a  careful  study  of  the  effects 
of  the  monotonous  repetition,  and  of  the  concentration 
upon  workers,  so  as  not  to  allow  work  to  proceed  to  the 
point  of  overfatigue.  Frequent  rests  are  necessary,  as 
overfatigue  impairs  health  and  efficiency,  and  should 
be  avoided. 

The    highly    specialized    machines,    features    of   our 
present  complicated  industrial  system,  demand  intelli- 
gent and  highly  skilled  men  to  attend  them. 
The  present  need  is  for  workers,  skilled  and  demands 
intelligent.     There  never  was  a  time  in  our  intelligent 
industrial    history  when   this    necessity  was  ^^^j^^^^^ 
realized  as  it  is  to-day,  and  never  before  have 
the  pubHc  and  employers  taken  such  an  interest  to  find 
methods  of  obtaining  and  of  assuring  the  supply  not 
only  of  skilled,  but  of  intelligent  workers.     The  intelH- 
gent  development  of  workers  has  a  decided  advantage 
in  raising  the  laborer  above  the  narrowing  tendencies 
of  high  speciaHzation.     Nothing  is  to  be  feared  from 
the  influence  of  workers  skilled  with  their  hands,  and 
developed  in  their  minds  for  independent  thought  and 
action,  but  much  is  to  be  feared  from  a  body  of  workers 
who  allow  others  to  think  for  them.     The  present  ac- 
tivity in  all  directions  for  educating  workers  has  a  de- 
cided benefit  in  developing  independent  workers  who 
think  as  well  as  perform  their  manual  work. 

During  the  last  century,  industrial  progress  outran 
all  other  forms  of  development,  and  it  is  destined  to  be 
greater  this  century,  but  the  chief  attention  Requisites 
will  be  directed  to  studying  the  human  ele-  for  future 
ment,  and  making  possible  its  greater  effi-  industrial 
ciency.     Future  industrial  progress  depends  p'^^^®^^- 
upon  the  hands  and  the  brains  which  tend  and  run 
the  complicated  machines.     Skill,  dexterity,  and  speed 


i8  ECONOMICS   OF   EFFICIENCY 

combined  with  intelligent  development  are  what  is 
demanded  to-day,  and  it  is  well  that  manufacturers 
have  so  early  reahzed  this  necessity,  and  have  taken 
measures  to  assure  the  higher  skill  and  intelligence  so 
necessary  for  further  industrial  progress  and  develop- 
ment. Modern  methods  of  production  favor  a  con- 
tinual advance  of  specialization.  Every  man  should 
do  what  he  can  do  best,  and  only  that.  It  is  a  fact  that 
the  fewer  the  movements  and  the  simpler,  the  better 
and  the  quicker  may  work  be  done.  Business  success 
depends  upon  a  most  complete  subdivision  of  work, 
and  the  greatest  number  of  repetitions  of  thought  and 
action  to  the  extent  of  mental  and  bodily  comfort. 
Speciahzation,  when  it  works  correctly,  takes  into  con- 
sideration not  only  the  worker's  efficiency  working  along 
lines  of  habit,  but  it  gives  every  aid  to  making  methods 
and  environment  fit  the  requirements  of  mind  and 
body.  Progress  demands  specialization,  but  it  also 
demands  that  specialization  should  not  in  any  way 
impair  health  or  lower  the  intelligence  of  the  workers. 
Specialization  should  be  associated  with  a  careful  study 
of  results,  so  that  health  is  not  impaired,  and  at  the 
same  time  the  intelKgence  of  workers  is  raised. 

Specialization  usually  leads  to  standardization. 
Standardization  is  setting  up  and  rigidly  following 
standard-  Standards  or  types.  It  has  made  considerable 
ization :  its  progress  in  manufacturing,  but  little  advance- 
meaning,  ment  in  other  forms  of  business  activity.  The 
tendency  of  modern  business  is  towards  standardization 
in  product,  tools,  apphances,  methods,  environment, 
equipment,  habits,  devices,  and  conditions.  It  is  a 
necessity  in  manufacturing  for  a  large  market,  and  is 
the  starting  point  in  every  attempt  to  produce  great 
quantities  of  goods  cheaply  and  uniformly.  Its  ad- 
vantages in  increasing  ef&ciency  and  lowering  costs  of 


THE   ECONOMIC   NEED   OF   EFFICIENCY     19 

production  are  everywhere  recognized.  The  produc- 
tion of  an  original  type  or  standard  involves  concen- 
tration of  thought  and  skill.  It  demands  expensive 
study  and  experimentation  by  the  best  talent.  When 
a  type  is  once  determined^  its  redupHcation  is  purely 
a  mechanical  process.  It  permits  skill,  dexterity,  and 
speed  on  the  part  of  employees,  and  greatly  increases 
output  at  a  lower  cost. 

In  the  making  of  commodities,  standardization  may 
be  carried  to  any  degree  of  completeness.  It  may 
comprise  entire  parts  of  an  article,  as,  for  ex-  poggi^ie 
ample,  locomotives,  typewriters,  or  watches,  extent  of 
Every  part  of  any  one  of  these  commodities  standardiza- 
may  be  made  so  exactly  like  the  correspond- 
ing part  of  every  other  commodity  of  the  same  kind,  that 
perfect  exchangeability  is  secured.  The  standard  for 
regular  product  has  been  set  and  reached  by  many 
manufacturers  with  many  products.  The  parts  mak- 
ing up  the  finished  product  are  made  separately  by 
workmen  often  in  different  establishments.  A  worker 
does  not  have  an  opportunity  to  fit  the  part  he  is  mak- 
ing to  other  parts  with  which  it  is  to  work.  The  part 
is  made  according  to  a  standard  type,  and  is  made  in 
great  quantities.  The  part  when  assembled  with  other 
parts  which  go  to  make  the  complete  article,  fits  in  its 
place  and  performs  its  function  usually  without  the 
touch  of  a  file.  Sometimes  an  absolute  standard  of  a 
product  may  not  be  possible.  In  such  cases,  standard- 
ization should  be  carried  as  far  as  possible.  Standard- 
ization is  the  basis  of  large-scale  production,  and  the 
tendency  is  towards  adopting  types  for  the  parts  of 
regular  product,  and  manufacturing  according  to 
standards. 

The   determination   of   standard   methods    and    the 
training  of  workers  in  their  use  eliminate  much  waste 


20  ECONOMICS   OF   EFFICIENCY 

through  eliminating  unnecessary  movements,  and  make 
for  greater  efficiency.  The  obtaining  of  standard  time 
Kinds  of  ^^^  ^  ^^^k  for  Comparison  with  actual  per- 
standard-  formance  is  necessary  in  increasing  effici- 
ization.  ency.     The  ascertaining  of   a  high  quahty, 

making  it  standard,  and  always  adhering  to  it,  is  a 
business  builder  and  a  valuable  asset.  Standard  en- 
vironment is  important  in  preventing  distraction  from 
work.  Wherever  possible,  standards  should  be  deter- 
mined and  adhered  to.  Standardization  is  one  of  the 
strongest  factors  in  our  industrial  system  working 
for  greater  efficiency,  and  is  a  basic  structure  for  suc- 
cessful competition  in  foreign  markets,  and  for  indus- 
trial progress. 

Profit  making  is  the  aim  and  the  object  of  business 
activity.  Profits  depend  upon  the  selling  of  product 
Competition  ^^  ^  greater  price  than  what  it  costs.  From 
an  important  their  nature,  profits  may  be  classed  as  competi- 
factorin  ^ive  and  monopolistic.  Profits,  unless  they 
are  monopolistic,  depend  upon  successful  com- 
petition. Competition  is  a  phenomenon  which  the 
average  business  man  must  reckon  with,  because  his 
success  depends  upon  his  ability  to  compete  success- 
fully in  the  market.  President  Hadley  defines  com- 
petition as  the  effort  of  rival  sellers  to  dispose  of  their 
goods  and  services,  or  of  rival  buyers  to  secure  the 
goods  and  services  which  they  require ;  an  effort  limited 
by  the  desire  of  the  seller  to  secure  as  high  a  price  as 
possible,  and  by  the  desire  of  the  buyer  to  pay  as  low 
a  price  as  possible.  Competition  is  not  the  product  of 
our  present  industrial  system,  as  it  has  existed  since 
the  beginning  of  barter.  Under  the  factory  system, 
competition  became  a  more  important  factor  in  busi- 
ness than  it  was  under  the  domestic  system,  when 
goods   were   usually   sold   first   and   made   afterwards. 


THE  ECONOMIC  NEED   OF  EFFICIENCY     21 

The  practice  of  our  industrial  system  is  the  production 
of  goods  for  the  market,  and  frequently  new  plants  are 
built  or  additions  made  to  old  to  fill  anticipated  orders. 
The  production  of  goods  for  future  markets  intensified 
competition  which  made  itself  felt  in  every  part  of  our 
industrial  system. 

The  growth  of  capital,  the  various  inventions,  and  the 
improvements  in  transportation  facilities  and  in  trans- 
mission of  intelKgence  increased  the  size  of  the 
business  unit,  and  in  the  efforts  to  dispose  of  petition  led 
product,  extended  markets  to  international  or  to  a  struggle 
world's  boundaries.  To  obtain  the  advan-  ^Qg^J^^^ 
tages  of  producing  on  a  large  scale,  a  much 
larger  product  must  be  disposed  of,  and  this  greatly 
intensified  competition.  The  best  possible  method  of 
selling  a  large  product  in  a  competitive  market  is  to 
undersell  one's  competitor.  Competition  resulted  in  a 
struggle  to  lower  costs  so  as  to  dispose  of  goods.  This 
made  it  necessary  for  the  manufacturer  to  do  every- 
thing possible  to  decrease  the  per  unit  cost  of  his  good. 
At  first,  as  previously  stated,  he  directed  his  whole 
attention  to  improved  machinery,  equipment,  and  pro- 
duction on  a  larger  scale,  with  its  greater  specialization 
and  standardization.  Competition  became  keener  and 
keener  and  new  devices  and  methods  had  to  be  devised 
to  lower  costs,  or  else  the  market  would  be  lost.  It 
was  as  a  last  resort  that  attention  was  attracted  to  the 
human  element,  and  its  study  at  once  revealed  wastes 
which  it  was  never  thought  existed,  and  the  fact  was 
discovered  that  costs  could  be  lowered  through  the 
elimination  of  these  wastes.  The  basis  of  successful 
competition  lies  in  efficiency,  and  the  more  efficient  a 
plant,  the  better  able  will  the  manufacturer  be  to  com- 
pete successfully  in  the  market. 

Production  in  its  manifold  phases  is  the  center  of  the 


22  ECONOMICS  OF  EFFICIENCY 

present  business  activity.  Production  applies  to  the 
creating  of  utilities  or  capacities  in  goods  for  the  pur- 
pose of  satisfying  human  wants.  The  utilities 
utilities  ^  °  with  which  production  is  concerned  may  be 
divided  into  four  classes  —  form,  place,  posses- 
sion, and  time.  A  new  form  utility  is  created  by  a 
change  in  form,  shape,  weight,  color,  taste,  smell,  or 
any  other  quality  of  a  thing  which  increases  its  capacity 
to  satisfy  human  wants.  Utility  may  be  added  by  a 
change  in  place.  Coal  in  New  York  is  worth  more 
than  it  is  at  the  mine.  Utihties  may  be  added  to  goods 
by  a  transfer  of  ownership  from  one  individual  to  another, 
or  by  a  change  in  time.  Certain  kinds  of  wines,  musical 
instruments,  as  well  as  many  other  products  improve  in 
quality  by  the  mere  lapse  of  time.  Things  that  grow, 
like  trees,  plants,  and  animal  Hfe,  increase  in  quantity 
in  time.  The  effort  of  keeping  commodities  until  they 
are  of  more  effective  service  involves  the  creating  of 
time  utilities. 

In  production  there  is  cooperation  of  many  economic 
elements.  In  a  producing  plant  one  finds  land,  build- 
ings, machinery,  tools,  raw  materials,  money, 
Moduction  goods  in  process  of  production,  finished  goods 
awaiting  sale,  labor,  and  management.  With 
every  business  enterprise,  certain  economic  elements  are 
needed  for  its  operation.  Generally  speaking,  each 
economic  element  which  enters  into  an  industry  is  a 
factor,  but  it  is  customary  to  group  the  numerous  factors 
into  four  classes,  land,  labor,  capital,  and  management  — 
and  to  subdivide  each  into  numerous  divisions. 

Land   includes   not   only   the   surface  of    the   earth, 
materials  above  and  beneath  it,  bodies  of  water  and 
what  they  contain,  but  the  physical  and  the 
natural  forces  which  assist  man  in  his  eco- 
nomic activities,  as  climate,  winds,  tides,  and  rainfall. 


THE   ECONOMIC   NEED   OF   EFFICIENCY     23 

Of  equal  importance  with  land  in  production  is  man. 
By  his  efforts,  the  raw  materials  are  taken   from  the 
mother  earth,  and  converted  into  utilities  to 
satisfy  human  wants.      The  efforts  of  man 
directed    toward    the    creation   of    utihties    are    called 
labor.     Labor  includes  not  only  the  efforts  of  persons 
in  the  creation  of  utilities  of  a  material  form,  but  serv- 
ices that  yield  utilities  of  an  immaterial  nature,  such 
as  those  of  the  doctor,   lawyer,  or  domestic  servant. 
Land  and  man  are  the  two  primary  factors  of  business, 
but  they  can  accompKsh  little  without  the        . 
assistance  of  a  third  factor,  capital.     Capital     *^^ 
consists  of  goods  produced  in  the  past  and  used  for 
further  production.     The  capital  of  a  country  consists 
of  buildings  used   for  industrial  purposes,    tools,   ma- 
chinery,   transportation    systems,    transmission    of    in- 
telHgence  systems,  money,  raw  materials,  finished  goods 
awaiting  sale,  etc.     Capital  is  not,  like  land  and  labor, 
an  independent  factor  in  production,  but  is  obtained 
by  the  apphcation  of  human  efforts  to  land.     The  use 
of  capital  in  its  various  concrete  forms  greatly  assists 
production,  economizes  labor,  and  permits  the  extensive 
utiKzation  of  materials  and  natural  forces.     The  task 
of  cooperating  land,  labor,  and  capital  in  a  business 
enterprise  is  an  important  one.     The  person  who  per- 
forms this  task  has  come  to  occupy  such  an  im- 
portant place  in  modern  business  that  it  is  ^ent^^^' 
necessary  to  regard  this  function,  the  man- 
agerial, as  a  separate  factor,  distinct  from  other  classes 
of  labor.     The  managerial  function  is  the  most  impor- 
tant factor  in  our  complex  industrial  system.     It  is  true 
that  there  must  be  land,  labor,  and  capital,  but  they 
are  of  little  consequence  without  organization,  super- 
vision, and  management.     The  managerial  function  of 
coordinating  land,  labor,  and  capital,  of  supervising  all 


24  ECONOMICS  OF  EFFICIENCY 

activities,  and  of  assuming  all  the  responsibilities  and 
risks  of  business  is  the  bone  and  sinew  of  every  business 
enterprise,  and  its  successful  performance  means  success. 

The  United  States  has  within  the  brief  span  of  three 
score  years  and  ten,  one's  allotted  life,  come  from  com- 
Business  parative  obscurity  to  contending  for  first  place 
men  should  among  the  world's  industrial  nations.  If  she 
pay  heed  to    continues  her  rapid  industrial  growth  for  the 

ciency.  ^^^^  ^^^  decadcs,  she  will  easily  lead  all  indus- 
trial countries.  Our  business  men  should  awaken  to 
the  great  need  of  a  careful  study  of  the  factors  of  pro- 
duction and  of  business  activities,  in  order  to  eliminate 
wastes,  and  to  ascertain  how  to  get  the  greatest  results 
from  the  use  of  the  different  factors  of  production.  They 
should  heed  the  cry  of  efficiency,  find  out  its  methods, 
and  do  their  utmost  to  eliminate  waste,  the  greatest 
evil  in  production  as  well  as  the  greatest  hindrance  to 
industrial  expansion  and  growth. 

QUESTIONS 

1.  What  is  the  factory  system?    How  did  it  affect  labor? 

2.  Why  was  the  human  factor  so  long  neglected?  What 
attracted  business  men  to  its  importance  ? 

3.  What  is  efficiency  ?    Why  is  it  the  goal  in  industry  ? 

4.  What  is  conservation  of  workers  ?  Why  was  it  so  long 
neglected  ? 

5.  Give  an  account  of  methods  of  management  during  the 
nineteenth  century. 

6.  How  does  the  expression  "Knowledge  is  power"  apply  to 
business  ? 

7.  How  should  accurate  knowledge  be  obtained  and  what  use 
should  be  made  of  it  ? 

8.  What  is  the  meaning  of  specialization  as  applied  to  (a)  labor, 
(b)  machines,  (c)  plants? 

9.  Show  that  specialization  is  a  permanent  factor  in  our  indus- 
trial system  and  an  economic  necessity  in  our  struggle  for  markets. 

10.  What  is  standardization?  Mention  the  various  kinds  of 
standardization. 


THE  ECONOMIC   NEED   OF  EFFICIENCY     25 

11.  What  are  the  advantages  arising  from  standardization? 

12.  What  is  competition  ?  Show  that  competition  is  an  impor- 
tant factor  in  business. 

13.  Name  and  define  the  different  kinds  of  utihties. 

14.  Name  and  define  the  different  factors  in  production. 

15.  Why  is  the  managerial  function  the  most  important  in  our 
industrial  system  ? 

REFERENCES 

Books 

N.  A.  Brisco,  "Economics  of  Business,"  Chs.  I,  II;  F.  T.  Carl- 
ton, "The  Industrial  Situation,"  Chs.  I,  II;  W.  H.  Cottingham, 
"  Business  Success"  ;  J.  C.  Duncan,  "The  Principles  of  Industrial 
Management,"  Ch.  VI;  R.  T.  Ely,  "Evolution  of  Industrial 
Society";  H.  Emerson,  "Efficiency,"  Chs.  II,  V,  VI,  VIII;  H. 
Emerson,  "The  Twelve  Principles  of  Efficiency,"  Chs.  XI,  XII; 
L.  Galloway,  "Organization  and  Management,"  Part  I,  Chs.  I, 
II,  III;  H.  L.  Gantt,  "Work,  Wages,  and  Profits,"  Chs.  I,  II; 
C.  B.  Going,  "Principles  of  Industrial  Engineering,"  Chs.  I,  II; 
C.  D.  Hine,  "Modern  Organization,"  Ch.  IV;  J.  A.  Hobson,  "The 
Evolution  of  Modern  Capitalism,"  Chs.  Ill,  IV,  V,  VI;  J.  A. 
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ing an  Industry,"  Chs.  I,  II ;  D.  S.  Kimball,  "Principles  of  Indus- 
trial Organization,"  Chs.  I-V;  F.  Koester,  "The  Price  of  Ineffi- 
ciency," Ch.  V;  J.T.Lincoln,  "  The  Factory " ;  D.  H.  Macgregor, 
"Industrial  Combination,"  Chs.  I-IV;  F.  L.  McVey,  "Modern 
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Organization,"  Chs.  I-IV;  "Business  Administration,"  edited  by 
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Administration,"  Ch.  I ;  C.  L.  Rapeer,  "The  Principles  of  Wealth 
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Day,"  Ch.  I;  R.  Robb,  "Lectures  on  Organization,"  pp.  1-23; 
S.  E.  Sparling,  "Business  Organization,"  Chs.  V,  VIII;  W.  D. 
Scott,  "Increasing  Human  Efficiency  in  Business,"  Ch.  I;  T. 
Veblen,  "The  Instinct  of  Workmanship,"  Ch.  VIH;  T.  Veblen, 
"The  Theory  of  Business  Enterprise,"  Chs.  II,  III,  IV. 

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26  ECONOMICS  OF  EFFICIENCY 

Profession,"  System,  Vol.  22,  pp.  365-369  ;  F.  E.  Cardello,  "Indus- 
trial Administration  and  Scientific  Management,"  Machinery, 
Vol.  18,  pp.  843-847;  M.  L.  Cooke,  ''The  Spirit  and  Social  Sig- 
nificance of  Scientific  Management,"  Journal  of  Political  Economy, 
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"Industrial  Management,"  Southern  Machinery,  Vol.  30,  pp.  171- 
173;  E.  C.  Eckel,  "The  Growth  of  Modern  Industrialism," 
Engineering  Magazine,  Vol.  45,  pp.  321-333;  J.  Hartness,  "Spe- 
ciaUzation  and  its  Significance,"  Sibley  Journal  of  Engineering, 
Vol.  28,  pp.  253-260 ;  W.  Irwin,  "The  Awakening  of  the  American 
Business  Man,"  Century,  Vol.  81,  pp.  689-692 ;  E.  D.  Jones, 
"The  Administrator  as  Scientist,"  Engineering  Magazine,  Vol.  47, 
pp.  163-171;  W.  D.  Orcutt,  "The  Conservation  of  Human 
Effort,"  Harper,  Vol.  122,  pp.  432-437  ;  A.  G.  Popcke,  "The  Rela- 
tion of  Capital,  Labor,  and  Efficiency  in  Manufacturing,"  En- 
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"Where  Science  serves  Business,"  System  (English  Edition), 
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son,  "Business  Administration  as  a  Constructive  Science,"  Iron 
Age,  Vol.  87,  pp.  662-663 ;  W.  Talbot,  "The  Human  Element  in 
Industry,"  Iron  Age,  Vol.  91,  pp.  366-368 ;  F.  W.  Taylor,  "  Prin- 
ciples and  Methods  of  Scientific  Management,"  Journal  of  Account- 
ancy, Vol.  12,  pp.  117-124;  F.  W.  Taylor,  "Principles  of  Scien- 
tific Management,"  American  Magazine,  Vol.  71,  pp.  570-581, 
785-793  ;  Vol.  72,  pp.  101-113  ;  S.  S.  Tuthill,  "Business  Economy 
and  Efficiency,"  Modern  Methods,  Vol.  20,  pp.  545-550;  D.  Van 
Alstyne,  "Modern  Shop  Management,"  Iron  Age,  Vol.  87,  pp.  970- 
972;  T.  J.  Zimmerman,  "The  Development  of  National  Manu- 
facture," System,  Vol.  10,  pp.  216-227;  "The  Present  State  of 
the  Art  of  Industrial  Management,"  American  Society  of  Mechan- 
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State  of  the  Art  of  Management,"  American  Machinist,  Vol.  37, 
PP-  757-762  ;  "The  Present  State  of  the  Art  of  Scientific  Manage- 
ment," Industrial  Engineering,  Vol.  12,  pp.  235-239. 


CHAPTER  II 

Efficiency 

A  FEW  years  ago,  many  believed  that  markets  could 
be  obtained  and  held  by  means  of  large-scale  production. 
The  economies  and  the  advantages  arising  E^oi^tionof 
therefrom,  it  was  thought,  would  so  greatly  re-  the  effi- 
duce  costs  of  production  that  American  indus-  ciency 
tries  could  continue  to  compete  successfully  °^°"^®°^®^*- 
with  the  world.  Large-scale  production  resulted  in 
keener  competition,  and  this  had  to  be  met  by  lower 
costs.  Manufacturers,  driven  by  the  necessity  of  a 
further  lowering  of  costs,  turned  their  attention  to  their 
own  plants.  Improvements  in  machinery  had  followed 
in  rapid  succession,  and  Kttle  more  could  be  expected 
in  that  direction.  Attention  was  by  accident  directed 
to  labor,  and  its  study  has  proven  that  lower  costs  must 
be  sought  through  this  neglected  factor  in  production. 
The  study  of  the  human  factor  in  production  revealed 
the  existence  of  much  waste  in  every  plant.  Manu- 
facturers marveled  at  the  extent  of  the  waste  found 
in  their  plants,  and  soon  realized  that  its  elimination 
meant  the  lowering  of  costs,  and  the  possibiHty  of  ex- 
tending markets.  The  movement  for  the  elimination  of 
wastes  is  given  the  name  of  efficiency.  The  efhciency 
movement  spread  with  great  rapidity  until  it  became 
first  national,  and  then  international.  Efficiency  is  a 
pubHc  need,  and  is  not  only  necessary  to  meet  compe- 
tition, but  to  conserve  a  nation's  resources  and  its  most 
valuable  asset,  its  working  classes. 

27 


28  ECONOMICS  OF  EFFICIENCY 

It  is  difficult  to  give  a  definition  of  efficiency  that 
will  be  accepted  by  all  who  are  endeavoring  to  promote 

its  development  in  business  activities.  The 
h?meanfng.  ^sual  meaning  of  efficiency  is  the  ratio  between 

the  actual  performance  of  an  operation  and 
the  maximum  performance  which  has  been  determined 
to  be  possible.     The  two  important  problems  are  what 

ought  to  be  in  case  of  an  action  and  what  ac- 
Scrrt*in.       tually  IS.     The  ratio  of  what  is  to  what  ought 

to  be  gives  the  efficiency  of  an  actual  per- 
formance.    Efficiency,  therefore,  equals 

actual  performance 

standard  performance 

It  is  purely  relative  and  should  always  be  expressed 
as  a  fraction,  in  vulgar  or  decimal  form.  The  value 
of  a  fraction  is  changed  by  changing  either  numerator 
or  denominator,  and  both  should  therefore  be  determined 
if  the  result  is  to  be  a  determined  quantity. 

The  numerator  may  be  easily  ascertained  by  actually 
measuring  a  performance  under  observation.  The  diffi- 
How  to  find  culty  comcs  in  finding  out  the  correct  value  of 
the  denomi-  the  denominator.  The  denominator  should  be 
nator.  determined  by  an  expert  who  investigates  ma- 

chines, tools,  materials,  methods,  and  arrangements, 
and  ascertains  those  best  adapted  for  the  performance 
of  a  task.  He  carefully  studies  the  performance  of  the 
task  and  ascertains  the  necessary  movements  and  the 
time  required  for  their  performance.  As  a  result  of 
scientific  investigation,  and  the  use  of  a  stop  watch,  the 
expert  decides  what  time  the  performance  of  a  task 
ought  to  take,  or  the  denominator.  The  denominator 
becomes  the  standard  to  be  striven  for  in  future  per- 
formances. Workers  should  be  trained  in  the  methods 
which  are  ascertained  to  be  the  best  for  performance 


EFFICIENCY  29 

in  standard  time.  The  work  as  actually  performed 
should  be  carefully  studied  so  as  to  eliminate  misdirected 
motions,  and  efficiency  increases  as  the  methods  of  actual 
performance  and  the  actual  time  spent  approach  the 
standard.  As  apphed  to  business,  efficiency  is  the  rela- 
tion between  an  action  which  has  produced  . 
a  known  result  and  the  action  which  has  been  j^  business, 
previously  determined  for  producing  a  similar 
result.  The  efficiency  of  an  action  varies  as  its  perform- 
ance varies  with  the  standard.  It  increases  as  the  per- 
formance approaches  the  standard,  and  the  aim  should  be 
to  have  as  Httle  difference  as  possible  between  the  two. 

The  real  value  of  computed  efficiencies  Hes  in  the  ex- 
tent to  which  they  indicate  the  means  of  eliminating 
wastes,  and  the  direction  in  which  energy  and  computed 
efforts  may  be  best  directed.     Computed  effi-  efficiencies; 
ciencies  are  of  little  value  unless  they  are  used  *^®"^  ^^^^®' 
for  the  purpose  of  studying  actual  work  in  order  to  dis- 
cover wastes,  and  efforts  are  directed  to  devise  means  of 
their  eHmination.     The  purpose  of  efficiency 
is  to  eliminate  waste,  and  this  is  the  object  of  efficiency! 
the  scientific  study  of  plant,  machines,  and 
men.     The  eHmination  of  waste  should  be  the  goal  in 
a  business  plant.     It  is  a  condition  which  allows  pro- 
duction at  lowest  cost,  and  successful  competition  in 
markets,   national   and   international.     In   every   busi- 
ness plant,  wastes  are  prevalent,  and  business  men  are 
usually  blind  to  their  extent.     Ignorance  has  been  and 
is  still  the  chief  factor  causing  high  costs  and  failures. 
Efficiency  demands  that  business  men  inves-  scientific 
tigate  and  study  the  various  factors  in  their  study  to  re- 
enterprises.     An  initial  study  usually  proves  veal  wastes, 
so  successful  that  it  leads  to  a  more  extensive  one.     The 
elimination  of  wastes  may  be  slow,  but  every  elimination 
lessens  costs  and  increases  efficiency.    Many  believe  effi.- 


30  ECONOMICS  OF  EFFICIENCY 

ciency  is  only  attained  when  ideal  conditions  are  reached. 
These  are  never  reached,  because  the  discovery  of  new 
methods,  machines,  etc.,  continually  raises  standards. 
The  elimination  of  wastes  in  any  form  increases  efh- 
ciency  and  lowers  costs.  Business  men  are  realizing 
the  importance  of  the  efficiency  movement  and  are 
taking  an  increasing  interest  in  it. 

Efficiency   has  received  the  greatest  attention   and 
the    greatest    advancement  has   been  made  in  manu- 
.  facturing     plants.     Wastes     are     found     in 

needed  in  every  kind  of  business  enterprise,  and  their 
all  kinds  of  elimiUiation  means  lower  costs  and  increased 
business        efficiency.     Efficiency,    therefore,    is    of    the 

enterprises.  -^  -^ '  ,       .  ' 

greatest  concern  to  every  busmess  man,  it 
matters  not  tJie  character  of  his  business  activities. 
It  is  lacking  to  a  remarkable  degree  in  the  conducting 
and  ia  the  management  of  railroads  and  transportation 
companies.  If  sincere  efforts  were  made  to  secure 
efficiency,  the  result  would  be  a  great  reduction  in  the 
cost  of  operation  of  public  utihty  corporations,  and  it 
would  be  possible  to  give  better  service  at  reduced  rates, 
and  the  companies  would  at  the  same  time  enjoy  the 
same  if  not  greater  net  earnings.  PubHc  officials  should 
also  pay  particular  attention  to  efficiency.  Public  ad- 
T,«  .  ministration  has  been  in  the  past,  and  is  at 

Efficiency  i      .  i  n*  i 

in  public  present,  conducted  with  appalling  wastes,  and 
administra-  the  result  is  that  people  receive  poor  returns 
*^°^*  for  the  public  money  expended.     The  public 

should  demand  a  more  efficient  use  of  its  funds,  and  if 
this  were  done,  it  would  put  an  end  to  graft  and  waste, 
and  secure  more  than  double  results  for  the  same  amount 
of  pubHc  money  expended.  The  entrance  of  efficiency 
into  our  pubHc  administration  would  be  a  most  impor- 
tant factor  in  placing  it  on  a  businesslike  basis.  One 
of  the  greatest  wastes  in  this  country  has  been  in  the 


EFFICIENCY  31 

expenditure  of  public  moneys.  The  sooner  the  public 
realizes  the  need  of  efficiency  in  public  administration, 
the  better  it  will  be  for  the  country  at  large. 

There  is  no  field  where  efficiency,  if  apphed,  would 
bear  greater  fruit  than  in  our  educational  system.     Our 
schools  are  seats  of  appalling  wastes.     The  -vvastesin 
most  important  period  in  the  hves  of  the  young  our  educa- 
boys,  who  are  destined  in  the  future  to  fur-  ^°^^^ 
nish  labor  and  executive  abiHty  to  manage  ^^^  ^^^' 
the  great  business  enterprises,  is  largely  taken  up  with 
training  which  is  of  little  use  to  them  in  preparation  for 
their  life's  work.     How  much  of  the  time  of  children 
is  practically  wasted  by  taking  their  time  for  studies 
which  are  of  little  or  no  use  to  them  in  their  future  work ! 
The  aim  in  our  industrial  system  should  be  a  training 
which  gives  the  best  preparation  for  our  boys  in  order 
that   they   may   become   efficient   and  intelligent  pro- 
ducers.    This  demands  a  careful  preparation  of  school 
curricula  with  this  aim  in  view,  and  the  adoption  of  the 
best  methods  of  instruction,  so  as  to  reach  the  result 
with  the  least  expenditure  of  time,  energy,  and  money  on 
the  part  of  the  students,  parents,  and  pubHc  in  general. 

The  years  from  fourteen  to  sixteen  are  years  of  great 
waste  in  the  Hves  of  many  children.     They  finish  gram- 
mar school,  but  are  too  young  to  enter  a  trade  provisions 
or  apprentice  school.     Their  parents  cannot  for  indus- 
afford  to  send  them  to  high  school,  so  they  ?"»!  train- 
are  put  to  work  at  whatever  they  can  get.  ^^' 
They  join  the  ranks  of  cheap,  unskilled  labor,  and  by 
the  time  they  have   been  working  a  couple  of  years, 
many  lose  the  desire  to  become  apprentices,  and  con- 
tinue unskilled  or,  at  most,  semi-skilled  workers.     How 
to  eliminate  this  waste  is  one  of  the  most  perplexing 
educational   questions   of   to-day.     The   answer   seems 
to  be  that  the  training  must  come  from  either  or  both 


32  ECONOMICS  OF  EFFICIENCY 

of  two  sources,  the  establishment  of  industrial  schools, 
or  the  extension  of  the  training  of  grammar  schools. 
Either  will  give  good  results,  and  time  should  not  be 
lost  in  making  provision  for  this  much-needed  training. 

Efficiency  demands  workers  developed  mentally, 
physically,  and  morally.  The  schools  throughout  the 
land  should  follow  large  cities  in  looking  after 
and  moral  ^^^  physical  development  of  children.  Effi- 
training;  cicucy  demands  a  strong,  healthy  body  for 
tanc?^°^'  work,  and  this  takes  us  back  to  the  physical 
development  of  children.  This  phase  of  train- 
ing has  in  the  past  been  sorely  neglected,  and  is  very 
important  with  every  boy  and  girl.  Children  should 
be  taught  proper  habits  of  living,  proper  ways  of  look- 
ing after  their  persons,  and  the  necessity  of  proper  diet, 
regular  periods  of  rest,  and  proper  environments  for 
Hving.  The  evils  of  the  use  of  alcohol,  tobacco,  and 
of  intemperance  in  every  form  should  be  impressed 
upon  them.  The  acquiring  of  good  habits  of  Hving  is 
very  essential  for  efficiency,  and  they  should  be  ac- 
quired in  the  home  and  in  the  school.  Efficiency  is  as 
badly  needed  in  our  schools  as  it  is  in  our  industrial  plants. 

The  study  of  how  to  obtain  more  productive  per- 
formance of  work  is  not  new.  It  is  one  of  the  oldest 
things  in  the  world.  From  the  most  primitive 
methods  for  ^^^^s,  men  under  a  natural  inherited  stimulus 
obtaining  have  always  sought  to  obtain  a  desired  result 
increased  -^ith  the  least  possible  effort.  Since  man  be- 
labors^ ^°°^  g^^  ^^  work  for  man,  various  methods  have 
been  devised  for  converting  a  given  outlay  of 
time  and  labor  into  the  largest  attainable  results.  The 
methods  are  as  numerous  as  they  are  varied,  and  in- 
volve every  device  of  human  ingenuity.  Kindliness 
and  cruelty,  high  and  low  wages,  the  selection  of  the 
most  intelligent  grade  of  workers,  carefully  supervised 


EFFICIENCY  33 

training,  steady  work,  and  reward  schemes  have  all 
been  tried  with  varying  results.  The  question  of  ob- 
taining the  best  possible  results  with  the  least  possible 
effort  dates  back  to  antiquity. 

The  idea  of  applying  the  term  efficiency  to  the  human 
element  in  business  is  new.  It  is  only  recently  that 
people  have  given  thought  to  increasing  re-  Applying  of 
suits  by  paying  attention  to  the  subject  of  efficiency  to 
physical  and  mental  work.  The  efficiency  ^°^^' 
movement  is  the  extension  of  efficiency  to  human  ef- 
forts in  business,  and  the  application  of  scientific  study 
and  investigation  to  methods  of  work,  requirements  for 
work,  and  conditions  of  human  beings  for  work.  It 
represents  the  introduction  of  science  into  every  phase 
of  business  activity,  and  will  result  in  the  reduction  of 
business  activities  to  a  scientific  basis.  The  wastes 
existing  in  every  form  of  business  which  the  initial 
study  of  efficiency  has  brought  forth  emphasize  its 
importance  in  the  struggle  in  every  form  of  competitive 
business  to  lower  costs.  The  efficiency  movement  has 
suddenly  come  into  prominence  and  is  attracting  the 
attention  not  only  of  business  men,  but  of  thinkers  in 
every  industrial  country  of  the  world. 

Many  believe  that  efficiency  means  simply  doing  things 
well.     It  means  far  more,  because  things  may  be  done 
well,  but  at  the  same  time  they  may  be  done 
as  well  in  far  less  time,  with  less  energy  ex-  done^wS! 
pended,  and  with  less  outlay.     Usually,  men  the  old  vs. 
say  things  are  done  well,  and  it  is  only  a  guess,  *^®  ^?^ 

1  1        ^  ri  '         1  1     nieaning. 

because  they  have  no  way  of  knowing  that  such 
is  the  case.  Efficiency  is  a  positive  relation  between  a 
standard  which  is  possible  of  accomplishment  and  the 
actual  attainment.  The  highest  efficiency  is  therefore 
when  the  actual  attainment  reaches  the  standard.  This 
should  be  the  aim  in  every  enterprise.     The  obtaining 


34  ECONOMICS   OF  EFFICIENCY 

of  standards  is  of  the  greatest  importance  in  efficiency. 
They  should  be  based  on  actual  knowledge  and  not  on 
guess.  The  obtaining  of  actual  knowledge  demands 
the  services  of  experts,  and  careful  study  and  experi- 
mentation. The  standards  should  serve  as  a  basis  for 
scientific  study  of  methods,  materials,  tools,  machines, 
and  equipment  in  order  to  devise  means  of  eliminating 
wastes,  and  bringing  actual  work  as  near  as  possible  to 
standard. 

It  is  never  advisable  to  be  too  radical  in  changes,  as 
the  greatest  success  comes  from  the  gradual  introduc- 
Changes  tion  of  innovations.  Many  wastes  may  be 
shoxiid  come  eliminated  by  slight  changes.  A  careful 
slowly.  study  of  machines,   tools,   materials,   equip- 

ment, and  methods  will  reveal  wastes  which  may  be 
wholly  or  partially  ehminated  by  the  management 
without  any,  or  with  only  slight  interference  with  the 
working  force.  The  greatest  difficulty  comes  with  the 
elimination  of  human  wastes,  or  the  directing  of  human 
efforts  in  such  a  way,  that  the  greatest  results  may  be 
obtained  with  the  least  expenditure  of  effort.  A  care- 
ful study  of  methods,  machines,  and  equipment  will 
give  standards,  or  the  best  methods  of  doing  tasks, 
and  the  time  necessary.  The  introduction  of  best 
methods  of  doing  work  in  a  working  force  will  invariably 
meet  with  opposition,  and  requires  tact  and  judgment 
How  to  ^^  the  part  of  the  management.  If  changes 
introduce  are  made  slowly,  the  workers  taken  into  con- 
changes,  fidence,  and  Kberally  rewarded  for  their  ef- 
forts, and  for  following  proper  methods,  opposition 
will  be  overcome  without  antagonism,  and  at  the  same 
time  the  cooperation  of  the  working  force  will  not  only 
be  maintained,  but  strengthened.  The  introduction  of 
efficiency  to  any  extent  in  an  enterprise  is  no  easy  mat- 
ter.    Tact,  judgment,  taking  men  into  confidence,  and 


EFFICIENCY  35 

fairness  and  justice  in  dealing  with  the  laboring  force 
are  essentials  for  success. 

Efficiency  is  primarily  concerned  with  the  eHmina- 
tion  of  wastes  in  every  form  of  business  activity.     The 
scientific  study  of  the  factors  in  production 
is    for    the    purpose    of    ascertaining   proper  ^aste.° 
methods  of  doing  work  for  a  guide  in  eHminat- 
ing  wastes.     Waste  has  been  defined  as  the  difference 
between  what  is  and  what  should  be.     Time,  energy, 
and  material  are  wasted  in  an  infinite  number  of  ways. 
Much  waste  frequently  occurs  in  buying  and  in  using 
materials.     In  buying,  waste  is  the  difference  between 
what  it  should  cost  to  secure  the  material 
which  is  determined  by  scientific  tests  to  be  buying  "^ 
the  best  adapted  to  producing  best  results,  and 
what  is  actually  paid.     Take,  for  example,  the  buying 
of  coal.     Careful  tests  should  be  made  to  determine 
the  grade  of  coal  which  gives  the  greatest  number  of 
heat  units  per  ton,  to  buy  this  grade,  and  to  test  it 
upon  dehvery  in  order  to  see  that  it  is  obtained. 

Much  waste  exists  in  the  use  of  materials.     By  care- 
ful testing  and  experimentation,   a   standard  may  be 
obtained  as  to  what  use  and  method  of  use  waste  in 
should  be  made  of  materials,  in  order  to  pro-  using 
duce  a  given  product  under  the  most  favorable  ^^^t^nais. 
conditions.     A  comparison  of  this  standard  with  what 
is  actually  used  gives  the  waste.      Under  old  methods, 
it  was  absolutely  impossible  to  discover  the  extent  of 
waste  in  the  using  of  materials,  and  even  the  detection 
of,  its  presence  was  usually  a  matter  of  accident.     Effi- 
ciency demands  the  ascertaining  of  standards  importance 
in  the  using  of  materials,  and  these  should  of  stand- 
give  the  best  quahty  of  material  needed  for  ^^^• 
production,  and  the  amount  which  should  be  used  under 
best  methods.     Standards  decide   not   only  the   exist- 


36  ECONOMICS  OF  EFFICIENCY 

ence  of  wastes,  but,  by  comparison  with  the  actual 
amount  used,  give  the  extent.  They  also  give  a  basis 
for  rigid  investigation,  which,  if  properiy  and  scien- 
tifically conducted,  results  in  the  elimination  of  much 
waste  and  the  saving  of  many  dollars. 

Time  is  one  of  the  important  items  in  business,  and 
more  wastes  occur  from  lost  time  than  from  any  other 
cause.     Loss  of  time  increases  costs,  it  matters 
^g*®°^       not  the  kind  of  business  enterprise  where  it 
takes  place.     Wasted  time  is  the  difference 
between  the  time  taken  to  perform  a  task  under  the 
most  favorable  conditions  and  the  time  actually  spent. 
Time  in  a  factory  is  lost  in  many  ways,  some 
?°osf  °^^      of  the  chief  of  which  are  :  waiting  for  supplies 
or  materials,  waiting  for  other  parts  of  the 
plant,    breakdowns,    not    starting    machines    on    time, 
stopping  before  the  end  of  the  working  day,  not  running 
machines  to  capacity,  running  machines  in  bad  repair, 
using  tools  in  bad  repair,  not  using  best  machines  and 
tools  for  work,  not  using  best  methods  of  production, 
and  soldiering  on  the  part  of  workers.     One  or  more 
of  these  forms  are  found  in  every  kind  of  business.     The 
work  of  efficiency  is  the  reduction  of  these  to  a  minimum. 
Great  wastes  are  found  in  every  branch  of  industry 
from  misdirected  energy.     A  prominent  investigator  of 
national  reputation  declares  that  misdirected 
^ergy°^       energy  is  the  greatest  of  wastes.     The  prob- 
lem of  lowering  costs  through  the  elimination 
of  wasted  energy  is  of  recent  date.     The  best  method  for 
How  to         performing  a  piece  of  work  with  the  least  ex- 
eiiminate       penditure  of   effort  should  be  discovered  by 
wasted  scientific   study,    and    this   should   be  made 

energy.  standard.     The  men  should  be  trained  in  this 

standard  and  precautions  taken  to  make  certain  of  its 
adoption  and  use.      This  is  a  decided  contrast  to  the 


EFFICIENCY  37 

old  method  of  allowing  every  employee  to  use  his  own 
method  of  doing  a  piece  of  work,  and  giving  no  thought 
as  to  whether  unnecessary  movements  were  taken. 
There  is  a  right  way  and  a  wrong  way  to  do  a  piece  of 
work,  it  matters  not  what  it  is.  The  right  way  should 
be  ascertained  and  made  standard.  The  presence  of 
the  wrong  way  means  waste  and  higher  costs.  This  is 
true  with  every  kind  of  labor  and  with  the  performance 
of  every  kind  of  task.  Efficiency  is  concerned  with 
the  discovery  of  the  right  way  and  having  work  per- 
formed according  to  this  standard.  The  detection  of 
wasted  energy  and  its  elimination  is  a  problem  of 
efficiency,  and  is  a  subject  that  deserves  the  closest 
attention  of  every  business  man.  The  aim  of  a  busi- 
ness enterprise  should  be  to  produce  results  with  the 
greatest  economy,  with  the  preservation  of  human 
health,  and  with  the  least  possible  waste  of  energy  or 
of  time  to  either  man  or  machine. 

Strenuousness  and  efficiency  are  not  synonyms,  but 
are  antagonistic  in  meaning.     The  former  demands  the 
putting  forth  of  extra  effort,  while  the  latter  strenuous- 
stands  for  the  conservation  of  human  energy,   ness  vs. 
Strenuousness    overtaxes    the    strength,    but  ®^"®^<^y- 
efficiency  conserves  it.     The  former  brings  greater  re- 
sults with  greater  efforts,  while  the  latter  brings  greater 
results  with  lessened  efforts,  through  the  elimination  of 
unnecessary  movements   and   the    proper    directing  of 
energy.     The  efficiency  pace  is  one  which  a  -^q^j-^q  ^f. 
worker  can  maintain  from  day  to  day  with-  ficient,  but 
out  extra  physical,  mental,  or  nervous  strain.  ^^^  stren- 
It  is  the  pace  of  continuous  work,  and  the  one 
which  does  not  overtax  strength  or  impair  health.     The 
strenuous  pace  is  the  spurt  of  a  short  time,  which  can- 
not long  be  maintained  without  causing  an  extra  strain 
upon  the  human  system,  undue  fatigue,  and;  if  continued, 


38  ECONOMICS  OF  EFFICIENCY 

impaired  health.  To  walk  four  miles  an  hour  is  efficient, 
because  this  can  be  kept  up  without  undue  exertion, 
but  to  hasten  along  at  six  miles  an  hour  is  strenuous, 
because  in  an  hour  or  two  at  this  pace,  a  person  will  be 
exhausted,  and  incapacitated  for  further  walking.  The 
efforts  of  man  should  be  made  efficient,  but  not  stren- 
uous. Efficiency  means  continuous  work,  while  stren- 
uousness  stands  for  temporary  spurts.  Efficiency  does 
not  injure  the  worker,  while  strenuousness,  if  continued, 
is  exhausting  and  very  injurious  to  health.  Strenuous- 
ness is  something  to  be  avoided  if  the  goal  is  efficiency. 

Men,  women,  and  children  of  the  industrial  classes 
are  the  greatest  gainers  from  efficiency.  A  basic  struc- 
Efficiency  ^^^^  ^^  efficiency  is  health,  and  the  demands 
protects  upon  employers  to  guarantee  the  maintaining 
health.  ^f  ^  healthy  working  force,   through  giving 

best  possible  working  conditions  and  environment, 
through  paying  special  attention  to  the  maintenance 
of  health,  and  through  training  in  proper  habits  of  Hving, 
benefit  all  members  of  the  working  class.  Many  workers 
have  a  fallacious  idea  that  efficiency  stands  for  strenu- 
ousness, something  which  demands  efforts  which  ex- 
haust and  undermine  health  and  unfit  workers  for  a 
long  period  of  service ;  whereas  it  stands  for  the  reverse, 
the  taking  of  every  precaution  to  preserve  and  main- 
tain health  and  to  prolong  the  productive  period  of 
workers.  Efficiency  demands  working  conditions  most 
conducive  to  health,  and  a  wage  which  assures  a  stand- 
ard of  living  of  a  nature  to  give  health,  recreation,  and 
The  pro-  ^  higher  level  of  intelligence.  It  banishes 
tection  of  child  labor,  and  assures  the  training  of  chil- 
chiidren.  ^yqtl  to  bccome  normal  men  and  women,  and 
developed  mentally,  physically,  and  morally.  Efficiency 
demands  physically  sound  and  healthy  bodies,  a  high 
intelhgence,  and  a  high  sense  of  morality,  and  is  gained 


EFFICIENCY 


39 


not  by  a  greater  expenditure  of  energy,  but  by  turning 
the  energy  used  into  the  most  productive  channels. 

EiB&ciency  demands  close  attention  to  the  training 
and  the  education  of  boys  and  girls,  in  order  to  develop 
them  into  men  and  women,  physically,  men-  Benefits 
tally,  and  morally  fitted  to  become  efhcient  from 
producers.  This  will  in  the  future  be  the  efficiency, 
means  of  raising  industrial  workers  to  a  higher  intelli- 
gence, which  will  be  a  decided  benefit  to  them,  and  to 
society  in  general.  Efficiency,  in  place  of  degrading 
workers,  lowering  standards  of  Hving,  and  narrowing 
intelligence,  works  to  the  advantage  of  every  laboring 
man  in  raising  standards  of  Hving,  in  guaranteeing  him 
means  of  obtaining  higher  intelKgence,  and  in  making 
him  not  only  more  skilled  and  more  intelKgent,  but  a 
better  citizen.  The  efhciency  movement  demands  in- 
telligent workers  and  the  employing  of  these  in  a  way 
to  attain  the  best  possible  results,  with  a  given  expen- 
diture of  time,  energy,  and  outlay.  This  should  be 
done  by  conserving  in  every  way  not  only  health,  but 
physical  and  nervous  vigor,  and  by  creating  conditions 
which  permit  workers  to  work  out  their  own  happiness 
and  contentment. 

Efhciency  is  based  upon  knowledge.     It  requires  the 
obtaining  of  accurate  information,  and  then  the  correct 
appKcation  of  it.     Efficiency  is   simply   the  importance 
careful  investigation  of  every  problem  of  the  of  knowi- 
business  world  in  order  to  determine  its  best  ®^^®- 
solution.     It  introduces  scientific  methods  of  research 
to  problems  of  business.     Every  step  in  business  should 
be  based  upon  definite  knowledge  of  how  it 
can  best  be  done.     Ef&ciency  depends  upon  ^f^^^jf 
knowledge  which  is  not  a  matter  of  guess- 
work, but  which  comes  from  a  careful,  painstaking,  and 
scientific  investigation.     It  requires  critical  observation, 


40  ECONOMICS  OF  EFFICIENCY 

accurate  description,  careful  analysis,  and  careful  classi- 
fication of  industrial  and  business  phenomena.  The 
aim  is  to  get  accurate  knowledge,  not  only  about  ma- 
chines and  materials,  but  also  about  workers.  Accurate 
knowledge  is  used  as  a  basis  for  devising  means  for  the 
ehmination  of  wastes  of  time,  material,  and  energy,  and 
is  the  corner  stone  of  efficiency  and  of  success. 

Ignorance,  rule-of-thumb  methods,  and  lack  of  skill 
are  factors  increasing  costs  and  inefficiency.  What  is 
Importance  ^^^^  wasteful  and  costly  than  the  old  method 
of  scientific  of  leaving  every  worker  to  guess  at  the  best 
study  of  -^ay  of  doing  his  work  ?  Customary  ways  of 
doing  things  are  inefficient  and  wasteful.  We 
are  hving  in  an  age  of  science,  but  at  the  same  time  in 
one  of  great  wastes.  The  requirement  is  the  directing 
of  science  to  business  in  all  of  its  manifold  phases,  in 
order  to  eliminate  wastes.  The  introduction  of  scientific 
study  of  business  methods  aroused,  at  first,  much  criti- 
cism from  all  classes  of  business  men,  but  to-day  this 
attitude  has  materially  changed,  and  business  men  are 
realizing  that  scientific  study  in  business  is  the  right 
arm  of  business  progress.  Business  men  are  daily 
realizing  that  in  this  age  of  keen  competition  and  of 
close  margins  it  is  necessary  to  run  business  on  a  scien- 
tific basis.  The  careful  study  of  every  phase  of  business 
and  the  application  of  science  and  accurate  knowledge 
are  factors  increasing  efficiency.  Those  who  do  not  heed 
the  demands  of  efficiency,  and  still  conduct  their  business 
on  the  old  system  of  guesswork,  will  find  themselves 
severely  handicapped,  in  their  struggle  to  make  profits. 
Only  a  few  years  ago,  if  a  man  advanced  a  new  idea 
in  business,  he  found  himself  and  his  inno- 
new  ideas  vation  ridiculed  on  every  side.  To-day,  busi- 
ness men  are  on  the  search  for  new  ideas 
which  will  be  helpful  in  lowering  costs,  and  all  suggestions 


EFFICIENCY  41 

are  given  a  respectful  hearing.  Business  men  are  real- 
izing the  extent  of  waste  in  the  old  methods  of  doing 
things,  based  on  haphazard  and  guess.  They  are  hav- 
ing brought  home  to  them  with  increasing  emphasis, 
the  necessity  of  a  careful  study  of  every  phase  of  eco- 
nomic activity  in  a  business  enterprise,  so  as  to  ascer- 
tain the  best  methods  of  performance  with  the  greatest 
eHmination  of  wastes.  This  is  the  age  of  science  in  busi- 
ness, and  also  the  age  of  lowering  costs  by  elimination 
of  wastes.  With  this  reaHzation,  and  the  appHcation  of 
science  to  business,  the  business  world  will  make  greater 
advancement  and  greater  industrial  progress. 

Efficiency  is  the  applying  of  scientific  method,  in- 
vestigation, and  research  to  business.  There  are  many 
ways  of  doing  things,  but  only  one  is  best. 
This  is  the  most  efficient  way,  and  the  aim  J^^g^t^ay 
of  every  business  man  should  be  to  find  the 
best  way  for  every  task  in  his  business,  and  to  have  the 
actual  performance  approach  as  nearly  as  possible  to 
the  best.  The  old  method  does  not  pay  any  heed  to 
ascertaining  the  best  way,  while  the  new,  or  efficient 
method  finds  the  best  way  first.  When  business  is 
conducted  on  improved  methods,  it  is  run  by  proved 
knowledge,  rather  than  by  guess.  Efficiency  utilizes  to 
the  fullest  extent  the  valuable  experience  of  the  past. 
A  science  of  work  takes  the  place  of  the  old  rule-of- thumb 
methods.  A  substitution  of  exact  knowledge  is  made 
for  guesswork,  efficiency  increases,  and  at  the  same 
time  wastes  are  reduced  and  profits  increased. 

The  ascertaining  of  the  best  way  for  every  task  is 
the  first  problem  of  efficiency.  The  second  is  the  mak- 
ing of  the  plant  and  equipment  in  such  condi-  Problems 
lion  that  the  one  best  way  may  be  accom-  to  be  solved 
plished  in  the  time  prescribed  by  experts,  inefficiency. 
The  third  is  the  selection  and  the  training  of  the  workers 


42  ECONOMICS  OF  EFFICIENCY 

and  the  giving  of  instructions,  so  that  they  may,  with 
the  equipment,  perform  their  tasks  in  standard  time. 
The  fourth  is  proper  remuneration  of  labor,  so  that 
there  will  be  an  incentive  for  workers  to  follow  instruc- 
tions and  to  do  their  part  in  performing  the  tasks  ac- 
cording to  standard  methods  in  standard  time.  Effi- 
ciency systems  are  various  methods  for  the  purpose  of 
increasing  the  efficiency  of  each  individual  in  a  plant. 
Efficiency  is  gained  not  by  a  greater  expenditure  of 
energy,  but  by  the  ehmination  of  waste,  and  by  getting 
the  greatest  productive  results  from  energy,  materials, 
and  equipment. 

There  are  various  degrees  of  efficiency.  The  ehmina- 
tion of  wastes  of  time,  energy,  or  materials,  it  matters 
Various  de-  ^ot  how  slight,  results  in  increasing  efficiency, 
grees  of  Efficiency  is  of  special  interest  to  the  man  with 
efficiency.  ^  small  business,  as  it  is  to  the  million-dollar 
corporation.  It  is  giving  business  a  critical  aspect, 
making  a  study  of  how  things  should  be  done,  and  how 
they  are  done.  It  would  appall  the  average  man,  if 
he  were  aware  of  the  profits  he  is  losing  annually  through 
ignorance  of  how  work  is  performed,  and  of  how  it  should 
be  performed.  Every  saving  of  waste  is  a  step  towards 
greater  efficiency  and  one  towards  increasing  profits. 
Efficiency  has  assumed  such  importance,  that  it  is  con- 
sidered one  of  the  fundamentals  of  the  industrial  system. 

QUESTIONS 

1.  Give  the  evolution  of  the  efficiency  movement. 

2.  What  is  efficiency  ?    How  is  it  ascertained  ? 

3.  What  is  the  value  of  computed  efficiencies?    What  pre- 
cautions should  be  taken  in  computing  efficiencies  ? 

4.  What  will  the  public  gain  by  the  adoption  of  efficiency 
methods  in  public  administration? 

5.  What  wastes  exist  in  our  educational  systems  ?    How  may 
they  be  eliminated? 


EFFICIENCY  43 

6.  What  is  the  importance  of  physical  and  moral  training  ? 

7.  Compare  the  old  methods  for  obtaining  increased  labor 
results  with  the  new. 

8.  Compare   the  old  methods  of  doing  work  with  the  new. 

9.  What  precautions  should  be  taken  in  the  introduction  of 
changes  ? 

10.  Mention  the  different  kinds  of  waste.  How  may  each  be 
eliminated  ? 

11.  What  is  the  relation  between  strenuousness  and  efficiency  ? 

12.  Mention  the  benefits  gained  by  the  laboring  classes  from  the 
adoption  of  efficiency  methods. 

13.  What  is  the  importance  of  scientific   study  in   business? 

14.  Why  should  business  men  be  on  the  continual  search  for 
new  ideas  ?     How  may  new  ideas  be  obtained  ? 

15.  What  problems  must  be  solved  in  ef&ciency? 

REFERENCES 

Books 

L.  D.  Brandeis,  "Scientific  Management  and  Railroads"; 
N.  A.  Brisco,  "Economics  of  Business,"  Ch.  IV ;  " Business  Admin- 
istration," edited  by  W.  D.  Moody,  Vol.  II,  Ch.  VII;  H.  N. 
Casson,  "Ads  and  Sales,"  Ch.  I;  M.  L.  Cooke,  "Academic  and 
Industrial  Efficiency,"  Carnegie  Foundation  for  the  Advancement 
of  Teaching,  Bulletin  5  ;  H.  Emerson,  "Efficiency"  ;  H.  Emerson, 
"The  Twelve  Principles  of  Efficiency";  H.  L.  Gantt,  "Work, 
Wages,  and  Profits,"  Chs.  I,  II;  L.  H.  GuHck,  "The  Efficient 
Life,"  Ch.  II;  H.  Munsterberg,  "Psychology  and  Efficiency"; 
W.  C.  Redfield,  "The  New  Industrial  Day,"  Chs.  VIII,  IX;  H. 
A.  Ruger,  "The  Psychology  of  Efficiency";  W.  D.  Scott,  "In- 
creasing Human  Efficiency  in  Business,"  Chs.  I,  X. 

Articles 

H.  G.  Bradlee,  "  Limitations  of  Scientific  Efficiency,"  American 
Machinist,  Vol.  34,  p.  984;  L.  D.  Brandeis,  "  The  New  Concep- 
tion of  Industrial  Efficiency,"  Journal  of  Accountancy,  Vol.  12, 
pp.  35-43;  F.  E.  Cardullo,  "Causes  of  Industrial  Inefficiency," 
Machinery,  Vol.  18,  pp.  931-935;  H.  Casson,  "Personal  Effi- 
ciency," Greater  Efficiency,  Vol.  3,  pp.  67-74;  F.  A.  Cleveland, 
''Efficiency   in   PubHc   Management,"    The   Efficiency  Society, 


44  ECONOMICS  OF  EFFICIENCY 

Transactions,  Vol.  I,  pp.  219-227  ;  F.  B.  Copley,  "How  it  Works: 
What  Manufacturers  and  Workmen  are  getting  out  of  Scientific 
Management,"  American  Magazine,  Vol.  75,  pp.  11-17;  J.  C. 
Duncan,  "Efficiency,"  Journal  of  Accountancy,  Vol.  12,  pp.  26- 
34;  T.  A.  Edison,  "How  Science  Aids  Business,"  System,  Vol.  10, 
pp.  229-231 ;  H.  Emerson,  "Efficiency,"  System,  Vol.  19,  pp.  37- 
44;  H.  Emerson,  "Philosophy  of  Efficiency,"  Engineering  Maga- 
zine, Vol.  41,  pp.  23-26;  H.  Emerson,  "Standards  of  Efficiency 
in  Shop  Operations,"  Iron  Age,  Vol.  88,  pp.  204-206;  C.  B.  Going, 
"  The  Efficiency  Movement,"  The  Efficiency  Society  Transactions, 
Vol.  I,  pp.  11-20 ;  H.  L.  Gantt,  "Industrial  Efficiency,"  Machinery, 
Vol.  18,  pp.  700-702;  H.  L.  Hollingworth,  "The  Psychology  of 
Efficiency  in  Work,"  Scientific  American  Supplement,  Vol.  74, 
p.  59;  D.  S.  Kimball,  "Another  Side  of  Efficiency  Engineering," 
American  Machinist,  Vol.  35,  pp.  263-264 ;  H.  T.  Lewis,  "Problem 
of  the  Efficiency  of  Labor,"  Popular  Science,  Vol.  82,  pp.  153-162  ; 
F.  C.  Myers,  "Some  Facts  Regarding  Efficiency,"  Southern 
Machinery,  Vol.  29,  pp.  3-4 ;  M.  W.  Mix,  "Efficiency,  Its  Use  and 
Abuse,"  Southern  Machinery,  Vol.  30,  pp.  178-180 ;  O.  E.  Perrigo, 
"Real  Efficiency,  What  It  is  and  How  to  Attain  It,"  Southern 
Machinery,  Vol.  29,  pp.  185-187;  H.  S.  Philbrick,  "Scientific 
Management,"  World  To-day,  Vol.  21,  pp.  1167-1170;  Polakov 
and  Hanmer,  "What  is  Efficiency?"  Gassier,  Vol.  44,  pp.  82-86; 
J.  C.  Smallwood,  "The  Efficiency  Principles  of  Technical  Educa- 
tion," Engineering  Magazine,  Vol.  42,  pp.  915-920;  H.  F.  Stimp- 
son,  "  Efficiency  in  Its  Relation  to  the  Consumer,"  Gassier,  Vol.  40, 
pp.  313-317  ;  H.  H.  Suplee,  "Some  Basic  Principles  of  Efficiency," 
Gassier,  Vol.  42,  pp.  233-238. 


CHAPTER  III 

Management  and  the  Plant 

The  problem  of  increasing  efficiency  is  essentially  a 
problem  of  the  management.  An  attempt  to  reduce 
management  to  a  compact  body  of  fixed  rules  ^j^^  founda- 
and  principles  common  to  all  enterprises  tion  of  ef- 
would  be  foolhardy,  yet  there  are  certain  es-  ficientman- 
tablished  and  well-defined  laws  and  principles  ^2®™®^  • 
which  are  of  great  value  as  aids  in  determining  the  or- 
ganization of  any  particular  business  enterprise.  It 
was  only  a  few  years  ago,  that  business  men  ridiculed 
the  idea  of  using  in  business  anything  that  was  taken 
from  the  writings  of  others.  It  was  not  denied  that 
knowledge  of  management  would  be  of  great  value,  but 
it  was  believed  that  one  could  learn  to  manage  only  by 
going  out  and  watching  others  manage.  Recently,  it 
was  discovered  that  good  management  is  founded  on 
laws,  practices,  and  methods  which  may  be  expressed 
in  simple  language,  and  that  their  study  is  of  great 
assistance  to  business  men  in  making  their  management 
more  efficient. 

The  foundation  of  management  is  efficient  organiza- 
tion.    Organization    consists    of    individuals,    and    the 
object  is  to  unite  these  into  a  body  working 
for  a  common  purpose.     Extreme  care  should  tion^^ts" 
be  taken  in  the  selection  of  men,  and  their  meaning 
assignment  to  tasks  for  which  they  are  es-  ^^^^™- 
pecially  adapted  and  properly  trained.     The 
duties  of  all  should  be  carefully  defined,   so  that  no 
friction  will  arise  through  a  misunderstanding  in  giving 

45 


46  ECONOMICS  OF  EFFICIENCY 

or  in  obeying  orders.  The  efficiency  of  an  organization 
depends  upon  the  fact  that  each  part  of  the  business 
enterprise  is  placed  under  the  control  of  a  person  well 
quahfied  to  perform  the  duties  in  the  best  possible 
manner.  An  organization  to  be  efficient  should  look 
after  and  take  care  of  the  men  who  compose  it,  because 
their  bodily  and  mental  development  is  an  important 
factor  bearing  upon  efficiency.  Loyalty,  enthusiasm, 
and  cooperation  of  workers  in  a  business  enterprise 
are  absolute  necessities  for  success  and  efficiency,  and 
their  presence  is  what  every  management  should  strive 
for.  These  three  requisites  cannot  be  obtained  unless 
the  management  inspires  confidence  by  the  assurance 
of  proper  reward  for  services,  and  proper  place,  tools, 
and  treatment  while  at  work.  An  organization  should 
have  at  its  head  a  strong  resourceful  leader  assisted  by 
a  carefully  selected,  well-trained,  and  enthusiastic  staff 
and  working  force.  There  should  be  a  close  contact 
between  management  and  employees,  bringing  with  it 
a  close  cooperation,  and  a  working  for  the  success  of  the 
business  enterprise. 

A  basic  structure  for  an  efficient  organization  is  sys- 
tem. System  consists  of  rules  and  regulations  which 
are  worked  out  and  adopted  as  governing  the 
m^anSg  **^  actions  of  members  of  an  organization.  Sys- 
tem is  an  absolute  necessity  in  every  business 
enterprise,  and  is  a  fundamental  for  efficiency.  Little 
can  be  accompHshed  without  its  aid,  and  every  business 
enterprise,  large  or  small,  should  have  some  organized 
method  of  transacting  business,  which  is  system,  though 
it  may  not  be  known  by  that  name.  Every  one  admits 
that  a  consistent  application  of  clearly  defined  rules 
and  methods  is  effective  in  bringing  better  results. 

An  efficient  system  is  evolved  from  within  an  organiza- 
tion and  is  not  brought  in  from  the  outside.     No  sys- 


MANAGEMENT  AND   THE  PLANT  47 

tern  fits  all  cases  because  systems  vary  with  enterprises. 
If  a  system  proves  a  success  under  one  environment,  and 
under  certain  conditions,  that  is  no  guarantee  -d 

.  CI.  P  Kequisites 

that  it  Will  prove  successful  m  another  enter-  for  an  ef- 
prise.     A   system   which   is   effective  in  one  ficient 
business    enterprise    may    work    with    little  ^^^  ^^' 
success   in   another   and  be   an  absolute  failure    in   a 
third.      Each   business   enterprise  has  its  own   special 
conditions,  and  these  should  determine  the  system  that 
is  to  secure  results.     The  success  of  a  system  depends 
largely    upon    its    proper    installation.     Careful    study 
should  be  made  of  the  enterprise  by  one  whose  knowl- 
edge of  conditions  as  they  exist  makes  him  most  com- 
petent  to  know   the  situation,   and  he   should   devise 
proper  rules,   regulations,   and  methods  of  procedure. 
With  care  in  the  selection  of  simple  forms,  easy  to  an- 
alyze, and  giving  sufficient  details,  but  ehminating  un- 
necessary data,  a  system  may  be  evolved  which  if  prop- 
erly conducted  will  be  successful,  and  prove  a  valuable 
asset  to  a  business.     System  is  a  good  serv- 
ant, but  a  bad  master.     A  system  when  once  system  f  ^^ 
introduced  should  not  be  subject  to  sudden  when  and 
changes.     This  does  not  mean  that  the  rules  5°^^^*^°" 
and  the  regulations  laid  down  by  a  system 
should  not  be  changed  to  meet  new  conditions.     Care- 
ful investigation  should  be  made  by  men  competent  to 
analyze  new  conditions,  and  only  on  their  recommenda- 
tion should  changes  be  introduced,  and  in  no  case  until 
a  most  searching  and  thorough  investigation  has  been 
made.     Every  progressive  enterprise  is  continually  grow- 
ing and  so  may  soon  outgrow  its  system.     An  efhcient 
system  should  be  flexible  and  subject  to  change  to  meet 
new  conditions.     A  system  to  continue  efficient  should 
grow  with  a  business,  and  be  changed  to  meet  new  condi- 
tions introduced  through  development  and  improvement. 


48  ECONOMICS  OF  EFFICIENCY 

Efficiency  in  any  business  undertaking  cannot  be 
obtained  and  maintained  without '  system  and  organ- 
ization. System  saves  time,  eliminates  inef- 
of  system^^  fective  and  unnecessary  efforts,  cuts  expenses, 
and  assures  accuracy  and  dispatch.  It  en- 
ables the  management  to  dismiss  details,  and  at  the 
same  time  to  keep  in  touch  with  the  different  parts  of 
a  business.  A  good  system  causes  coordination  of  all 
the  best  efforts  of  an  organization,  the  cooperation  of 
all  of  its  members,  enthusiasm  for  the  success  of  the 
business,  and  harmony  between  the  departments  and 
members  of  an  organization.  Such  a  system  keeps  a 
business  enterprise  together  and  is  an  important  essen- 
tial in  efficiency. 

Efficiency  demands  that  the  management  maintains 
proper  coordination  between  the  different  factors  en- 
tering into  a  business  enterprise.  Coordina- 
tion- its"  ti<^^  is  arranging  the  elements  of  a  business 
meaning  SO  that  each  is  working  to  capacity,  and  at 
andim-  ^-^^  same  time  keeps  every  other  element 
which  is  depending  upon  it  working  to  its 
capacity.  Men  are  frequently  prevented  from  working 
to  full  capacity  by  doing  work  that  should  be  done  by 
others,  as,  for  example,  a  carpenter  carrying  his  lumber. 
A  machine  is  frequently  prevented  from  its  full  capacity 
by  the  loafing  of  an  attendant,  by  carelessness  in  feed- 
ing, by  not  being  run  at  full  speed,  or  by  lateness  in 
starting.  For  good  coordination,  four  essentials  are 
necessary :  proper  planning  and  routeing  of  work ; 
regular  arrival  of  materials  and  supplies;  prompt  and 
Essentials  proper  repairs  to  equipment;  and  proper 
for  good  CO-  quality  of  supplies.  In  the  struggle  to  obtain 
ordination,  efficiency,  the  necessity  for  proper  coordina- 
tion assumes  greater  and  greater  importance.  It  lessens 
waste,  and  at  the  same  time  assures  regular  and  simul- 


MANAGEMENT  AND  THE  PLANT  49 

taneous  efforts  working  for  a  common  purpose,  the  suc- 
cess of  the  business  enterprise. 

Efficiency    demands    that    the    management    should 
ehminate  as  many  details  as  possible.     Nevertheless, 
the  management  should  know  accurately  the  The  han- 
actual  conditions  of  every  branch  of  a  busi-  diingof 
ness.     It    is    absolutely    necessary    and    im-  ^®*^^- 
portant  that  the  executive  head  be  thoroughly  familiar 
with  his  business,  its  needs,  and  its  operations.     The 
only  proper  method  of  gathering  the  necessary  infor- 
mation for  the  executive  head  is  by  a  proper  series  of 
reports.     Efficiency  cannot  be  obtained  to  any  degree 
in  management  without  reports,  and  these  should  be 
simple  and  accurate,  containing  that  which 
it  is  necessary  for  the  management  to  know,  for*^r^ports. 
and  eliminating  all  unnecessary  and  unim- 
portant details.     The  heads  of  the  various  departments 
should  be  thoroughly  acquainted  with  their  work  and 
possess,  among  other  qualities,  that  abiHty  to  accurately 
obtain  and  summarize  into  simple  reports   the  details 
necessary  for  their  chief  to  know.     With  an  efficient 
system  of  reports,  the  executive  head  centers  his  work 
at  his  desk,  and  has  constantly  before  him  all  the  im- 
portant information  concerning  his  business.     He  can, 
without  leaving  his  office,  keep  in  touch  with  the  work- 
ings of  every  branch  of  his  business  enterprise.     The 
time  of  the  executive  head  is  too  valuable  to  be  con- 
sumed with  details,  which  may  just  as  well  be  performed 
by  minor  officials,  and  time  so  spent  is  time  wasted. 

It  is  a  poor  manager  who  does  not  delegate  definite 
responsibilities    to    his    subordinates.      Fre-  gubordi- 
quently,  subordinates  become  dissatisfied  when  nates  and 
all  responsibihty  is  taken  away.     A  manager  5!^p°^^^- 
should  give  all  possible  weight  to  the  opinions 
of  his  subordinates,  and,  as  he  gains  confidence  in  their 


50  ECONOMICS  OF  EFFICIENCY 

judgment,  leave  many  points  entirely  to  their  decision. 
Nevertheless,  every  business  manager  should  insist  that 
his  subordinates  follow  out  his  decisions  as  to  methods 
of  work,  handling  men,  and  other  business  matters. 

Efhciency  demands  that  the  management  should 
always  be  on  the  alert  for  new  ideas  or  new  methods 
Suggestions  which  might  be  incorporated  in  the  business 
and  ideas;  and  increase  efhciency.  Information  is  the 
their  very  soul  of  business  progress.     The  business 

impor  ance.  ^qj.|^  jg  presenting  continually  to  the  eyes 
of  every  business  man  suggestions  and  ideas  which  may 
be  applied  to  his  own  business.  Many  business  men 
find  that  it  pays  to  pay  large  sums  to  their  employees 
for  suggestions.  Employees  are  encouraged  to  offer 
suggestions  for  increasing  the  efficiency  of  the  business 
enterprise.  Every  suggestion  accepted  and  adopted 
carries  with  it  a  prize  of  a  sum  of  money  to  the  one  who 
offered  it.  Many  business  enterprises  keep  a  special 
staff  seeking  new  processes,  ideas,  and  methods  that  will 
result  in  greater  efficiency.  The  modern  efficient  busi- 
ness enterprise  should  be  kept  up  to  date,  as  the  old  way 
of  doing  things  soon  becomes  obsolete.  New  improve- 
ments, methods,  processes,  and  systems  often  arise 
from  ideas  obtained  here  and  there,  and  changed  to 
meet  conditions  of  an  enterprise.  Efficiency  demands 
a  constant  study  of  every  branch  of  a  business,  as  well 
as  a  constant  study  for  new  ideas  and  suggestions  which 
might  make  it  possible  to  devise  new  methods,  processes, 
machines,  materials,  and  equipment  which  would  make 
it  possible  to  produce  more  efficiently. 

Every  management  in  its  efforts  to  eliminate  wastes 
or  obtain  the  greatest  efficiency  has  certain  demands 
made  upon  it.  First,  it  should  get  its  work  performed 
accurately  and  rapidly.  The  greater  the  elimination 
of  unnecessary  efforts,  movements,  and  wastes  of  time, 


MANAGEMENT  AND  THE  PLANT  51 

the  nearer  is  the  management  to  the  coveted  goal  of  effi- 
ciency.    Secondly,  it  should  get  the  maximum  output 
from  machinery  and  equipment.     This  neces-  Requisites 
sitates    perfect    coordination,    and    the   best  for  the 
possible    machines,    tools,    and    equipment,   elimination 
Thirdly,  it  should  get  the  maximum  output  ^  ^^^  ^^' 
as  well  as  the  maximum  quality  from   materials  con- 
sumed.    Fourthly,  it  should  market  goods  at  the  highest 
price.     Lastly,  it  should  take  pains  to  see  that  improve- 
ments in  methods  and  equipment  are  introduced,  in 
order  to  keep  the  business  abreast  of  the  times  and 
prevent  it  from  becoming  obsolete. 

Efficiency  demands  on  the  part  of  the  management  an 
accurate   and   efficient   cost-accounting   system.     Busi- 
ness men  formerly  did  not  think  it  necessary 
to  make  any  study  of  costs  and  determine  as  tem ;  Tts' 
nearly    as    possible    their    accuracy.     Costs  meaning 
were  based  on  guesswork.     Among  the  first  po^ance 
requisites  of  efficiency  to  which  business  men 
gave  heed  was  that  demanding  the  elimination  of  guess- 
work in  finding  costs.     This  introduced  cost  accounting. 
An  accurate  cost  system  is  an  absolute  necessity  in  every 
business  enterprise.     It  consists  of  a  system  of  records 
which  enables  a  business  man  to  ascertain  with  fair 
accuracy,  not  only  the  production  cost  of  a  product, 
but  the  constituent  elements  of  that  cost.     The  records 
are  obtained  by  means  of  printed  cards.     Care  should 
be  taken  to  ask  only  for  that  information  which  is  neces- 
sary to  obtain  costs.     It  is  the  work  of  a  cost  expert  to 
ask  for  essential  information,  and  employees  should  be 
instructed  in  ffihng  out  the  cost  cards,  so  that  all  ex- 
penditures  will  be   charged   in   the   right  places.     No 
fixed  rule  can  be  laid  down  for  what  information  to  ask 
for,  as  this  varies  with  different  business  enterprises. 
The  cards  should  be  a  suitable  size  for  fiHng  and  for 


52  ECONOMICS  OF  EFFICIENCY 

easy  reference.  Nothing  is  so  essential  to  a  cost  system 
as  a  good  indexing  and  filing  system.  This  has  been 
neglected  in  the  past,  and  has  been  the  cause  of  the 
failure  of  many  cost  systems. 

The  principles  of  a  cost  system,  generally  speaking, 
are  the  same  for  all  business  enterprises,  but  their  ap- 
Requisites  plicatiou  differs  according  to  local  conditions, 
for  a  cost  A  successful  system  must  be  developed  for 
system.  each  business  enterprise,  and  should  be  es- 
pecially adapted  to  meet  local  conditions.  A  thorough 
understanding  of  the  general  principles  of  cost  account- 
ing and  a  thorough  knowledge  of  local  conditions  are 
necessary  for  the  planning  of  a  successful  cost  system. 
No  general  rigid  system  can  be  outlined  and  made 
standard,  because  the  cost  system  should  in  every  in- 
stance be  the  product  of  the  particular  business  enter- 
prise where  it  is  to  work. 

A  properly  devised  cost  system  readily  gives  in  de- 
tail the  efficiency  of  working  conditions  in  every  part 
Advantages  of  a  plant.  It  shows  if  materials  are  being 
of  cost  economically  used,  and  if  the  proper  amount 

system.  ^^£  finished  product  of  the  desired  quality  is 
obtained.  If  the  proper  amount  is  not  secured,  it 
points  out  where  to  investigate  to  discover  the  cause 
of  the  difference.  The  accurate  account  kept  of  pro- 
ductive workers  tells  not  only  the  exact  amount,  but 
the  kind  of  work  that  each  is  doing.  Loafing  and  pad- 
ding of  accounts  are  prevented.  The  management 
knows  at  all  times  the  efficiency  of  each  productive 
worker.  The  management  should  use  the  figures  as- 
certained by  a  cost  system  to  guide  it  in  studying  the 
business  enterprise,  in  order  to  increase  its  efficiency. 
A  business  man  should  know  what  expenses  should  be, 
and  by  comparison  with  the  actual  expenses  the  wastes 
will  be  shown.    This  demands  that  careful  study  is 


MANAGEMENT  AND  THE  PLANT  53 

previously  made  and  correct  costs  ascertained.     After 
this  is  done,  a  cost  system  proves  of  the  greatest  possible 
service   for  making   a   comparison   of   actual   expenses 
with  what  they  should  be,  and  showing  exactly  where 
costs  should  be  pruned.     The  management  should  strive 
to  learn  if  it  is  getting  the  greatest  output,  the  highest 
quality,  and  the  best  service  from  materials,  machines, 
and  men.     A  good  cost  system  tells  that,  but  it  is  of 
little  service,  unless  it  is  carefully  studied   and   made 
the  basis  for  investigation,  in  order  to  discover  whether 
it  is  possible  to  prune  costs.     There  is  no  business  man 
who  can  afford  to  conduct  his  business  without  a  re- 
liable cost  system.     It  is  one  of  the  requisites  for  effi- 
ciency, and  is  one  of  the  most  valuable  assets  in  business. 
In  every  manufacturing  plant,  an  important  factor 
bearing  upon   efficiency  is  location.     A  well-equipped 
and  properly  managed  plant  may  fail  in  a  piantioca- 
poor  location,  while  the  existence  of  a  badly  tionand 
managed  concern  may  depend  upon  its  favor-  efficiency, 
able  location.     The  problem  of  location  is  one  for  the 
management,    and   its   correct   solution   frequently   re- 
sults in  much  saving,  and  many  additions  to  profits. 
Several  factors  have  a  bearing  upon  factory  Factors  to 
location,  as,  for  example,  market  for  sale  of  be  con- 
the  product,  suitable  transportation  facihties,  sidered  in 
nearness   to  raw  materials,   power  facilities, 
available  labor  supply,  favorable  cKmatic  conditions,  suit- 
able water  supply,  available  capital,  and  local  advantages 
and  disadvantages.     The  necessary  factors  in  each  in- 
stance depend  upon  the  character  of  the  article  manu- 
factured.    Sometimes  one  factor,  and  sometimes  another, 
is  the  one  that  should  be  carefully  studied  in  choosing 
the  place  best  suited  for  a  particular  manufacturing  plant. 
Location  is  an  important  problem  with  mercantile  enter- 
prises, as  well  as  with  other  kinds  of  business. 


54  ECONOMICS  OF  EFFICIENCY 

The  design  of  buildings  used  in  a  business  enterprise 
has  an  important  bearing  on  efficiency.  No  standard 
Desi  n  of  P^^^  ^^^  ^^  given,  bccause  the  design  which 
buUdings  gives  efficiency  depends  upon  the  kind  of 
a^d  business   conducted,    and   upon   local   condi- 

efficiency.  ^-joj^g^  ^he  chief  consideration  is  a  careful 
study  of  the  different  phases  of  the  business  to  be  carried 
on,  and  the  special  local  conditions.  The  size  and  the 
design  of  the  buildings  may  then  be  made,  to  secure  the 
greatest  economy  of  space  and  the  greatest  saving  of 
time  in  the  particular  case.  Buildings  suited  for  one 
kind  of  business  may  be  entirely  unsuited  for  another. 
Whatever  the  design  of  buildings,  the  chief  aim  should 
be  to  furnish  proper  space  for  the  performance  of  work, 
with  the  greatest  facihty,  the  greatest  saving  of  time, 
and  the  least  expenditure  of  money,  effort,  and  power. 
The  success  of  many  enterprises  often  depends  largely 
upon  their  buildings,  and  no  money  should  be  spared 
in  obtaining  a  design  that  suits  the  character  of  the 
work  to  be  performed. 

A  business  plant  should  be  equipped  with  the  latest 
and  the  highest  grade  equipment.  In  a  manufactur- 
ing plant,  the  equipment  means  success  or 
for  Wgh-^  failure  to  the  manufacturer.  The  problem 
grade  ma-  of  arrangement  of  equipment  is  an  important 
chines  and  factor  in  every  business,  and  often  time  and 
money  are  wasted  by  not  paying  attention 
to  it.  Are  there  sufficient  machines  of  the  best  grade 
to  do  the  work  required?  This  is  an  important  ques- 
tion for  every  manufacturer  to  answer.  There  is  a 
second  question  that  needs  solution.  If  a  difference 
exists  between  the  rated  capacity  of  a  machine  and  its 
actual  output,  what  is  the  cause,  and  what  should  be 
done  to  raise  the  output  to  the  rated  capacity?  In  a 
manufacturing  plant,  efficiency  demands  that  the  man- 


MANAGEMENT  AND  THE  PLANT  55 

agement  pay  particular  attention  to  the  attending  of 
machines.  Careful  watching  of  parts  of  machinery  for 
loose  or  weak  parts,  regular  cleaning,  and  proper  oihng 
frequently  prevent  breakages.  The  management  will 
find  it  profitable,  from  the  point  of  efficiency,  to  employ 
repair  men  whose  duties  are  to  see  that  machines  are 
properly  tested,  cleaned,  and  oiled,  and  that  machines 
and  tools  are  always  in  the  best  repair. 

Efficiency   demands   that   machines   and   tools   used 
should  be  the  best  adapted  for  the  performance  of  the 
work  which  is  required.     Invention  is  con-  Method  of 
tinually  bringing  into  existence  new  machines  assuring 
and    tools    the  introduction   of  which   may  ^ent  ma- 
cause  greater  efficiency  in  production.     Fre-  chines  and 
quently,    a    manufacturer    is    placed    at    a  *o°^^- 
decided     disadvantage,     because     his     competitor     is 
producing  more  efficiently  and  at  lower  costs,  due  to 
the   introduction   of   recently   invented   machines.     To 
assure  the  use  of  the  best  possible  machines  and  tools, 
an    expert   is    often    employed    to    carefully 
study  those  in  use,   others  adapted   to   the  anexjfert.*' 
same  kind  of  work,  and  new  inventions,  to 
see  if  there  are  any  that  allow  production  to  be  carried 
on  more  efficiently,  and  at  lower  costs.     To  lead  the 
van  of  competition  is  the  ambition  of  every  manufac- 
turer, and  to  do  so,  he  should  produce  with  a  high  de- 
gree of  efficiency  and  with  low  costs,  but  at  the  same 
time  quaHty  and  workmanship  should   not   suffer.     A 
very  important  factor  in  increasing  efficiency,  and  one 
which  every  factory  management  should  give  careful 
consideration,  is  to  have  the  factory  equipped  with  the 
best  possible  machines  and  tools.     An  urgent  demand 
of  efficiency  in  manufacturing  is  to  obtain  the  rapid 
production  of  goods  of  the  highest  grade,  and  at  the 
lowest  cost.     This  necessitates  having  the  machinery 


56  ECONOMICS  OF  EFFICIENCY 

in  operation,  as  nearly  as  possible,  loo  per  cent  of  the 
working  time.  To  accomplish  this,  too  much  stress 
cannot  be  placed  upon  obtaining  the  best  possible  supply 
of  tools,  always  in  the  best  condition,  and  distributing 
them  so  that  a  worker  has  ready  at  hand  the  proper 
tool  in  the  best  possible  shape. 

Materials  of  various  kinds  are  important  expense 
items  in  every  manufacturing  plant.  Great  wastes 
Quality;  its  ^^ist  in  their  buying  and  in  their  use.  Ef- 
importance  ficicncy  demands  the  elimination  of  these 
in  buying,  wastcs,  and  their  elimination  is  an  important 
problem  for  the  management  of  every  business  enter- 
prise. Careful  investigation  should  be  made  to  dis- 
cover the  grade  that  gives  the  best  product  with  the 
least  waste.  Many  plants  have  finely  equipped  labora- 
tories for  testing  quality  of  goods,  and  experiments  are 
constantly  being  carried  on  to  discover  if  different 
materials  or  grades  can  be  more  economically  used. 
The  question  is  to  discover  in  any  good  the  quahty  of 
the  part  that  is  utilized,  as  in  wood  pulp,  it  is  the  fiber, 
in  coal,  the  heat  unit,  etc.  What  the  management 
wishes  to  know  is  the  grade  which  contains  not  only 
the  best  quality,  but  also  the  greatest  amount  per  unit 
of  that  quality.  The  same  care  should  be  exercised  in 
buying  machines  and  tools^  as  a  flaw  in  steel  may  not 
only  cause  loss  to  machinery,  but  additional  loss  through 

the  stoppage  of  machines  and  the  idleness  of 
poor  quaSy!  ^^^-     Pa^ying  Strict  attention  to  quality  in 

order  to  obtain  the  best  niaterials  for  the 
money  expended,  is  an  absolute  necessity  in  every 
business  enterprise  where  goods  are  bought.  A  second 
consideration,  as  important  as  the  first,  is  the  care- 
ful testing  and  inspection  of  goods,  when  deHvered, 
to  see  that  the  quality  and  the  amounts  ordered  are 
obtained. 


MANAGEMENT  AND  THE  PLANT  57 

Quality  is  an  important  consideration  in  production. 
Every  plant  should  strive  to  turn  out  goods  of  the  high- 
est quaHty,  and  none  except  these  should  be 
allowed  to  leave  the  premises.  Precautions  SoduSi^ 
should  be  taken  to  see  that  only  goods  of  the 
highest  grade  are  produced.  Competent  and  trustworthy 
inspectors  should  be  chosen,  and  the  raw  materials 
should  not  only  be  carefully  inspected,  but  a  separate 
inspection  should  be  made  during  each  process  of  pro- 
duction, and,  finally,  the  finished  article  should  pass 
most  rigid  tests.  QuaHty  in  goods  is  a  demand  of  effi- 
ciency and  cannot  be  overlooked.  It  should  receive 
the  closest  attention  in  the  buying  of  materials  and  in 
the  production  of  finished  goods.  Business  failures  are 
frequently  due  to  neglect  in  not  buying  according  to 
quahty,  in  not  testing  goods  dehvered,  and  in  careless- 
ness in  allowing  goods  of  low  quality  to  go  on  the  market. 

The  economical  use  of  materials  is  an  important  ques- 
tion in  every  business  enterprise.  The  ignorance  of 
employees  in  not  knowing  how  to  care  for  Economical 
materials  frequently  causes  serious  loss.  Ex-  use  of  ma- 
posure  to  Hght,  moisture,  or  dryness  causes  loss,  teriais ;  how 
which  care  in  handhng  prevents.  Many  °°  ^^• 
managements  never  give  a  thought  to  instructing  their 
employees  in  the  economical  use  of  materials.  A  man- 
agement should  instruct  its  employees  in  the  economical 
use  of  materials,  and  insist  that  its  instructions  are 
carried  out.  A  few  lessons  in  planning  prevent  waste 
in  the  cutting  out  of  garments,  leather  goods,  etc.  The 
management  should  make  a  thorough  and  careful  study 
of  how  to  get  the  desired  result  with  the  most  economical 
use  of  the  materials  involved.  The  most  economical 
use  should  be  made  standard,  and  the  working  force 
engaged  in  using  materials  should  be  carefully  instructed 
in  the  standard,  and  no  other  should  be  allowed  in  the 


58  ECONOMICS  OF  EFFICIENCY 

plant.  A  few  instructions  in  firing  and  keeping  boilers 
in  proper  shape  frequently  save  hundreds  of  dollars  in 
fuel.  Proper  oiling  and  the  careful  use  of  oils  will  often, 
in  the  course  of  a  year,  add  many  dollars  to  profits. 

Efficiency  demands  attention  to  waste  products. 
Consideration  should  in  every  business  enterprise  be 
Savings  given  to  waste  material  to  find  if  some  eco- 
from  waste  nomical  use  cannot  be  made  of  it.  Many 
products.  large  plants  have  added  greatly  to  their  prof- 
its by  the  use  of  waste  products.  Many  manufactur- 
ing plants  save  annually  many  hundreds  of  dollars  in 
fuel  by  the  expenditure  of  a  few  dollars  to  provide 
equipment  for  obtaining  power  by  the  burning  of  saw- 
dust, shavings,  and  other  waste  products.  Every  one 
knows  of  the  vast  sums  made  by  the  large  packing- 
houses and  by  the  oil  refineries  from  by-products. 
Savings  can  be  made  in  small  plants,  as  well  as  large, 
by  attention  to  odds  and  ends.  Scores  of  devices  are 
in  use  throughout  the  country  for  the  utilization  of 
wastes,  and  this  is  an  item  which  cannot  be  overlooked, 
and  is  one  which  should  receive  careful  attention. 

The  storage  of  materials  is  an  important  problem 
which  deserves  the  careful  attention  of  the  management. 
Goods  should  be  kept  in  some  specifically 
mat^eriais.  designated  place,  either  room,  shed,  or  yard. 
Those  which  are  valuable  and  easily  carried 
away  should  be  safely  kept,  while  the  bulky  and  less 
valuable  may  be  stored  in  yards  or  sheds.  All  goods 
affected  by  exposure  to  weather  or  by  the  elements 
should  be  protected  by  covers. 

The  storeroom  in  a  plant  deserves  careful  attention. 
Requisites  It  should  be  Centrally  located  and  permit  of 
of  a  store-  easy  access.  Plants  both  large  and  small 
room.  should  reserve  proper  and  sufficient  space  for 

stores.      In    the  latter,  the   owner  himself   may  take 


MANAGEMENT  AND  THE  PLANT  59 

active  charge  or  he  may  assign  it,  as  part  of  the  work 
of  a  trusted  employee,  while  in  the  former,  a  special 
person  is  assigned  to  take  charge,  and,  frequently,  it  is 
necessary  to  have  a  large  clerical  force  to  assist  him. 
The  arrangement  of  the  storeroom  should  be  of  such 
a  nature  as  to  allow  the  greatest  possible  dispatch 
in  filling  orders.  Each  article  should  have  its  own 
place,  suited  in  arrangement,  capacity,  and  location  to 
the  requirements  of  efficient  use.  Bins,  shelves,  racks, 
etc.,  should  have  easy  access  and  be  carefully  marked. 
Nothing  pays  so  well  as  proper  arrangement  and  sys- 
tem in  a  storeroom.  A  management  may  eliminate 
much  waste  by  having  a  centrally  located,  properly 
arranged,  and  systematically  run  storeroom. 

There  should  not  only  be  system  in  the  arrangement 
of  goods^  but  also  in  the  recording  of  goods  received  and 
given  out,  so  that  the  quantity  remaining  on  „ 

?        ,  '     ,  11^  >m_-     •  System  in 

hand  may  always  be  known.  Ihis  is  a  neces-  recording 
sity  in  order  to  prevent  overstocking,  loss  of  receipts  and 
time  arising  from  shortages  or  searching  for  issues  of 
mislaid  goods,  and  deterioration  of  stock 
through  age.  The  presence  of  any  one  increases  costs, 
and  the  absence  of  all  is  demanded  by  plants  working 
for  greater  efficiency.  Extreme  care  should  be  taken 
in  issuing  goods.  A  competent  man  should  be  in  charge, 
and  goods  should  be  issued  only  through  him  or  by  his 
orders.  Careful  records  should  be  kept  of  all  goods 
received,  and  they  should,  as  soon  as  possible,  be  dis- 
tributed to  their  proper  places.  A  record  or  permanent 
inventory  should  be  kept  of  the  receipts  and  the  issues 
of  goods.  This  shows,  at  any  time,  the  amount  of 
each  kind  of  goods  in  stock.  The  simplest  method  is 
to  attach  a  card  or  ticket  to  each  stock  bin  or  shelf,  on 
which  all  receipts  and  issues  are  recorded.  A  good  stock 
system  works   towards   greater   efficiency  by  being   a 


6o  ECONOMICS  OF  EFFICIENCY 

safeguard  against  waste  of  materials,  theft  by  em- 
ployees, and  losses  from  other  causes. 

Efficiency  draws  the  attention  of  the  management 
to  the  moving  of  goods  in  a  plant.  Time  may  often  be 
Moving  saved  and  costs  lessened  by  using  proper  f  acil- 
goods  in  a  ities  for  moving  goods.  Goods  are  usually 
plant.  moved  several  times  during  the  process  of  pro- 

duction, as  the  moving  of  goods  in  and  about  the  place 
of  storage,  from  storeroom  to  shop  or  different  shops, 
from  one  machine  to  another,  and  of  all  finished  goods 
to  the  stockroom.  Modern  methods  should  be  used 
in  conveying  goods.  Space  will  not  permit  the  mention 
of  the  many  devices  in  use  for  moving  goods,  yet  con- 
veying in  many  factories  is  carried  on  by  obsolete 
methods.  A  management  should  pay  particular  at- 
tention to  the  problem  of  conveying  goods,  as  its  satis- 
factory solution  saves  time,  lessens  costs,  and  increases 
efficiency. 

The  shipping  of  goods  in  every  manufacturing  and 
mercantile  enterprise  requires  careful  attention.  If  a 
System  in  management  has  not  a  good  system  for  the 
shipping  shipping  of  goods,  losses  will  continually  occur, 
goods.  2^Q  goods  should  leave  any  business  enterprise 

unless  they  go  through  the  shipping  room,  or  are  shipped 
on  instructions  from  the  shipping  clerk.  Careful  in- 
spection should  be  made  of  filled  orders  in  order  to  see 
that  only  goods  ordered,  and  of  the  particular  grade 
ordered,  are  sent.  This  saves  much  expense,  in  pre- 
venting the  shipping  of  goods  not  ordered,  or  of  a  differ- 
Lossesfrom  ^^^  grade.  Carelessness  in  shipping  costs 
lack  of  many  plants  large  sums  of  money  annually, 

system.  Goods  sometimcs  leave  a  plant  without  in- 
voice, and  this  usually  means  loss.  Again,  goods  are 
frequently  sent  to  the  wrong  destination,  or  are  allowed 
to  go  the  wrong  route,  and  either  means  additional  ex- 


MANAGEMENT  AND   THE  PLANT  6i 

pense.  It  should  be  an  absolute  rule  that  no  goods 
should  leave  a  plant  without  careful  inspection  and 
proper  shipping  instructions. 

The  questions  of  packing  and  of  routeing  are  of  the 
utmost  importance  in  pruning  costs.     This  is  the  special 
study  of  the  shipping  clerk,  but  in  large  plants 
it  is  assigned  to  experts.     Railroads  classify  g^^^^^ 
goods  and  fix  rates  according  to  classifications. 
Often,  a  Httle  different  crating  or  packing  puts  goods  in 
a  different  classification  and  at  a  lower  rate.     The  classi- 
fications affecting  goods  of  a  particular  plant  should  be 
carefully  studied,  and  the  goods  packed  so  as  to  obtain 
the  lowest  rates. 

The  proper  routeing  of  goods  is  an  important  task  in 
every  plant  shipping  commodities.     The  task  of  finding 
the  route  which  will  get  goods  to  their  destina- 
tion in  time,  and  at  the  lowest  cost,  is  of  special  go^^s!^^ 
interest  to  a  large  class  of  business  men,  yet 
how  many  pay  attention  to  it?     The  careful  study  of 
routes  and  proper  routeing  save  a  large  concern  many 
hundreds  of  dollars  annually.     Proper  routeing  means 
a  saving  even  to  a  plant  shipping  a  few  thousand  dollars' 
worth  of  goods,  yet  it  is  a  part  of  management  which  has 
been,  and  is  to-day,  badly  neglected. 

Every  management  is  confronted  with  the  task  of 
inventory  taking  at  least  once  a  year.     A  running  or 
permanent  inventory  does  not  do  away  with  inventory; 
the  annual  inventory,  because  the  latter  is  itsimpor- 
necessary  to  test  the  accuracy  of  the  former.  *^°^®- 
The  value  of  an  inventory  depends  largely  upon  its 
accuracy.     The  greatest   care   should   be   exercised   to 
assure  correctness  in  counting,  measuring,  and  weigh- 
ing goods,  and  in  listing  their  amounts.     Only  reliable 
and  trustworthy  clerks  should  be  chosen  for  the  task, 
and  every  one  engaged  in  taking  an  inventory  should 


62  ECONOMICS  OF  EFFICIENCY 

be  impressed  with  the  fact  that  accuracy  is  the  watch- 
word. An  annual  inventory  is  an  absolute  necessity 
in  every  business  enterprise.  It  furnishes  not  only 
the  actual  state  of  affairs,  but  also  records  for  careful 
study.  It  shows  whether  or  not  departments  are  over- 
or  under-stocked.  It  draws  the  attention  of  the  man- 
agement to  the  presence  of  undesirable  stock,  which 
should  be  sold  at  any  price,  and  its  place  taken  by  sal- 
able goods.  Without  a  stock  system,  the  inventory  is 
of  invaluable  service,  and  with  it,  it  tests  the  accuracy 
of  stock  records. 

Efficiency  demands  standardization  wherever  possible. 
In  a  producing  plant  there  should  be  standard  products 
standard-  ^^  ^  standard  quality.  In  making  standard 
ization;  its  products,  it  is  possiblc  and  advantageous  to 
necessity.  spend  large  sums  of  money  for  special  ma- 
chinery and  equipment,  which  not  only  reduce  costs, 
but  greatly  increase  rapidity  of  production.  The  de- 
termination of  standard  quaHty  in  product  and  the 
taking  of  rigid  measures  to  prevent  any  goods  below 
standard  going  on  the  market,  give  a  decided  advan- 
tage to  a  business  firm.  It  is  equally  as  important  to 
have  standard  machines,  standard  tools^  standard 
methods  of  using  and  caring  for  them,  and  standard 
methods  for  every  operation.  The  standardization  of 
methods  of  work  is  one  of  the  chief  demands  of  efficiency. 
It  has  made  some  progress,  but  as  its  necessity  is  daily 
becoming  more  recognized,  considerable  advancement 
may  be  expected  during  the  next  few  years.  The  ten- 
dency of  the  modern  industrial  world  is  toward  stand- 
ardization in  every  form  of  economic  activity.  The 
efficiency  movement  is  hastening  the  introduction  of 
standardization  in  various  phases  of  business  activity. 
Standardization  is  recognized  as  one  of  the  basic  struc- 
tures of  efficiency,  and  one  of  the  chief  factors  working 


MANAGEMENT  AND   THE  PLANT  63 

towards  lowering  costs,  increasing  markets,  and  assur- 
ing industrial  progress. 

According  to  the  census  of  1910,  the  percentage  of 
total  expenses  of  all  manufacturing  industries  paid  out 
in  1909  for  materials  was  65.8.  This  empha- 
sizes the  importance  of  buying  in  a  manufac-  o?bujdng^^ 
turing  plant,  and  it  is  of  equal  importance  in 
every  mercantile  estabhshment.  To  obtain  goods  at 
the  lowest  possible  prices  is  of  the  greatest  importance 
to  every  business  man,  and,  frequently,  decides  the  suc- 
cess or  the  failure  of  a  business  enterprise.  Good  buy- 
ing, or  obtaining  the  grade  of  goods  needed  for  business 
purposes,  in  sufficient  quantities  to  meet  the  demands 
of  business,  and  at  the  lowest  possible  prices,  is  a  req- 
uisite for  efficiency,  and  is  a  problem  to  which  every 
management  should  give  the  closest  attention.  A 
good  buyer  will  not  overstock,  and  will  always  keep 
on  hand  a  proper  supply  of  goods  to  meet  the  demands 
of  business.  He  will  take  advantage  of  low  prices  on 
staple  goods  to  buy  additional  quantities,  but  he  will 
not  buy  in  such  quantities  as  to  financially  embarrass 
his  firm  or  to  cause  loss  in  deterioration  or  from  other 
causes  before  the  goods  are  used  or  disposed  of.  Good 
buying  is  an  important  factor  in  every  business  enter- 
prise, and  promotes  efiiciency  as  well  as  adds  to  the 
profits  of  a  business. 

The  chief  aim  in  business  is  profit  making.  Profits 
depend  upon  careful  buying,  low  costs,  and  good  selhng. 
Carelessness  or  bad  judgment  in  one  is  suffi-  c  «• 

T     .  r  1  r   '^  Selling  an 

cient  to  ehmmate  profits  and  to  cause  failure,  important 
The   existence   of   every   business   enterprise  factor  in 
depends  upon  the  abihty  of  the  management  ^^^^^®^^- 
to  dispose  of  its  goods  at  a  greater  price  than  the  total 
outlay  or  expenses.     SelHng  is  therefore  an  important 
factor  in  every  business.     Too  great  emphasis  cannot 


64  ECONOMICS  OF  EFFICIENCY 

be  placed  upon  its  importance,  for  upon  it  depends  not 
only  profits,  but  the  very  existence  of  an  enterprise. 

To  obtain  the  greatest  efficiency  in  the  selKng  of  goods 

and  in  the  selHng  force,  is  an  important  problem  for 

every  management.     Value  and  service  are 

Requisite  .       :;  .^       .    .        ,  ,  .   ,     .  i       i  i 

for  ef-  the  bases  of  satisfaction,  which  is  a  valuable 

ficiency^in  asset  in  obtaining  and  in  holding  customers. 
®®  ^s-  In  selHng,  more  depends,  in  the  majority  of 

cases,  upon  the  men  than  upon  the  goods.  The  selec- 
tion of  salesmen  should  be  careful,  deliberate,  and  not 
hasty.  Careful  selection  should  be  followed  by  efii- 
cient  training  in  the  fundamental  principles  of  sales- 
manship. A  capable,  efficient  selHng  force  is  the  aim 
of  every  business  management,  and  makes  for  efficiency 
and  for  an  increase  in  profits. 

Advertising  has  passed  from  a  speculative  stage  to 
where  it  is  a  necessity.  It  is  difficult  to  find  a  business 
Advertising;  enterprise  which  does  not  advertise  in  some 
its  purpose  form.  Advertising  may  be  good  or  bad.  Bad 
and  aim.  advertising  is  simply  a  waste  of  money,  while 
good  is  one  of  the  most  potent  factors  in  business. 
Thousands  of  dollars  are  wasted  annually  in  poor  ad- 
vertising. Advertising  is  a  necessity  in  every  busi- 
ness, yet  it  is  a  branch  of  business  where  great  wastes 
exist,  and  where  there  is  a  great  need  for  increasing 
efficiency.  Advertising  is  an  important  task  for  every 
management,  and  by  careful  attention  and  study, 
greater  results  may  be  obtained.  The  purpose  of  ad- 
vertising is  to  sell  goods^  and  the  aim  is  to  sell  the  great- 
est amount  of  goods  with  the  least  expenditure  in  ad- 
Requisites  vertising.  A  management  should  place  its  ad- 
for  good  vertising  in  charge  of  a  competent  man,  who 
advertising,  ghould  strive  to  increase  the  efficiency  of  adver- 
tising by  obtaining  greater  results  from  the  money  ex- 
pended for  the  purpose.     Poor  selection  of  mediums 


MANAGEMENT  AND  THE  PLANT  65 

and  poor  copies  are  sources  of  wastes,  and  represent 
large  losses.  Too  great  emphasis  cannot  be  placed 
upon  the  necessity  and  the  advisability  of  increasing 
returns  from  advertising  through  the  choice  of  proper 
mediums  and  the  writing  of  good  copies.  Good  me- 
diums and  good  copies  sell  goods,  and  are  the  requisites 
for  the  efficiency  which  every  management  should  strive 
for  in  advertising. 

Credit  has  an  important  bearing  upon  every  phase 
of  industrial  activity.  The  granting  of  too  Hberal 
credit  has  been,  in  the  past,  the  cause  of  many  credit ;  its 
failures,  and  to-day  is  too  freely  practiced,  place  in 
The  lowering  of  margins  of  profit  demands  a  ^^^^^^^s. 
careful  study  of  credit  and  the  possibility  of  ehminating 
losses  by  discrimination  in  its  use.  Recent  years  have 
introduced  many  changes  in  credit-giving,  and  the  re- 
sult has  been  the  working,  through  the  ehmination  of 
losses,  toward  greater  business  stability.  Discrimination 
in  credit  giving  is  an  important  business  factor,  and  is 
one  which,  if  properly  exercised,  often  brings  success  in 
place  of  failure.  The  granting  of  credit  demands  not 
only  a  thorough  knowledge  of  character,  but  ability  to 
judge  capacity,  and  the  necessity  of  capital.  No  branch 
of  a  business  requires  greater  shrewdness  and  has  a 
more  important  bearing  upon  losses  and  effi'ciency  than 
wisdom  in  granting  credit. 

QUESTIONS 

1.  What  is  business  organization  ?    How  may  it  be  attained  ? 

2.  Give  the  relation  between  system  and  successfal  business 
management.     State  the  advantages  of  system. 

3.  What  is  coordination  ?     How  is  it  ascertained  ? 

4.  What  are  the  advantages  of  a  good  cost  system?     What 
precautions  should  be  taken  in  its  installation  ? 

5.  Mention  the  different  factors  which  should  be  considered 
in  plant  location. 


66  ECONOMICS  OF  EFFICIENCY 

6.  What  methods  should  be  adopted  to  assure  most  efficient 
tools,  machines,  and  methods? 

7.  What  losses  may  result  from  not  paying  heed  to  quality? 
Where  in  production  should  quality  be  considered  ? 

8.  Mention  the  requisites  for  a  good  storeroom.      What  is  the 
importance  of  system  in  its  arrangement  ? 

9.  What  losses  arise  from  lax  shipping  methods?     Outline  a 
system  for  a  shipping  department. 

10.  Outline  a  plan  for  a  good  inventory  system.    Why  is  inven- 
tory a  necessity  in  business  ? 

11.  Why  is  standardization  one  of  the  basic  structures  of  effi- 
ciency ? 

12.  What  is  the  relation  between  buying  and  business  success? 
What  precautions  should  be  taken  in  buying? 

13.  Why  is  selling  an  important  factor  in  business?    What  are 
the  requisites  for  efficiency  in  selling? 

14.  Why  is  advertising  a  necessity  in  business  ?    What  are  the 
essentials  for  efficient  advertising  ? 

15.  What  are  the  fundamentals  of  credit? 


REFERENCES 
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Bunnell,  "Cost  Keeping  for  Manufacturing  Plants,"  Chs.  IV, 
XII,  XIV,  XVI;  The  Business  Man's  Library,  Vol.  VI,  "Organ- 
izing a  Factory";  C.  U.  Carpenter,  "Profit  Making  in  Shop  and 
Factory  Management,"  Chs.  II,  III,  V,  XII ;  A.  H.  Church,  "The 
Proper  Distribution  of  Expense  Burden";  C.  Day,  "Industrial 
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Management,"  Part  I,  Chs.  VIII,  IX,  X,  XI,  Part  II,  Chs.  I,  II, 
V;  C.  D.  Hine,  "Modern  Organization,"  Ch.  VIII;  E.  D.  Jones, 
"Business  Administration  ";  W.  Kent,  "Investigating  an  Indus- 
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tion," Chs.  VII,  IX,  XII,  XIII ;  S.  Kirschbaum,  "Business  Organ- 


MANAGEMENT  AND   THE  PLANT  67 

ization  and  Administration,"  Chs.  I-XI ;  C.  E.  Knoeppel,  "Maxi- 
mum Production,"  Chs.  II,  VI;  Library  of  Business  Practice, 
Vol.  I,  Part  I ;  Library  of  Business  Practice,  Vol.  X ;  J.  Lee  Nichol- 
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IV,  V;  C.  C.  Parsons,  "Business  Administration,"  Chs.  II,  III; 
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"Lectures  on  Organization,"  pp.  47-68;  W.  G.  Rose,  "Success  in 
Business,"  Part  III;  B.  R.  Vardaman,  "The  Master  Salesman"; 
J.  R.  Wildman,  "  Cost  Accounting  " ;  J.  Zimmerman,  "  Credits  and 
Collections." 

Articles 

O.  M.  Becker,  "Building  a  Factory,"  System,  Vol.  10,  pp.  239- 
250 ;  B.  Buxbaum,  "  Shop  Organization  and  Arrangement,"  Ameri- 
can Machinist,  Vol.  35,  pp.  535-539;  J.  Calder,  " The  Productive 
Department,"  The  Efficiency  Society,  Transactions,  Vol.  I,  pp.  55- 
171 ;  C.  U.  Carpenter,  "The  Organization,"  Southern  Machinery, 
Vol.  28,  pp.  204-206;  J.  H.  Carter,  "The  Relation  of  the  General 
Manager  to  the  Men,"  The  Efficiency  Society,  Transactions,  Vol.  I, 
pp.  243-246;  A.  H.  Church,  "What  to  Record?"  Engineering 
Magazine,  Vol.  45,  pp.  166-173;  H-  Emerson,  "The  Creation  of 
Organization  with  Special  Reference  to  Personnel,"  Southern 
Machinery,  Vol.  29,  pp.  1 59-161 ;  B.  A.  Franklin,  "A  Problem  of 
Quality  of  Workmanship,"  Engineering  Magazine,  Vol.  46,  pp.  201- 
206 ;  H.  L.  Gantt,  "The  Basis  of  Proper  Management,"  American 
Machinist,  Vol.  35,  pp.  841-842;  C.  W.  Hoyt,  "Scientific  Sales 
Methods,"  Greater  Efficiency,  Vol.  3,  pp.  43-50;  W.  H.  Ingersoll, 
"Advertising,"  The  Efficiency  Society,  Transactions,  Vol.  I, 
pp.  131-142  ;  Wm.  Kent,  "The  Attitude  of  the  General  Manager," 
Greater  Efiiciency,  Vol.  3,  pp.  33-41 ;  W.  B.  Laine,  "Arrangement 
and  Operation  of  Storerooms,"  Industrial  Engineering,  Vol.  14, 
pp.  45-48;  M.  W.  Mix,  "Administration  Departments,"  The 
Efficiency  Society,  Transactions,  Vol.  I,  pp.  109-118;  C.  J. 
Morrison,  "What  Effective  Organization  Means,"  American 
Machinist,  Vol.  35,  pp.  784-786;  A.  H.  Morton,  "The  Layout, 
Design,  and  Equipment  of  Industrial  Works,"  Industrial  Engi- 
neering, Vol.  13,  pp.  289-292;  B.  Orenstein,  "The  Organization 
of  Large  Commercial  and  Industrial  Establishments,"  Engineer- 
ing Magazine,  Vol.  44,  pp.  588-596 ;  E.  C.  Peck,  "  Systematic  versus 
Scientific  Management,"  Iron  Age,  Vol.  88,  pp.  364-365;  E.  E. 
Pratt,  "A  New  Industrial  Democracy,"  Annals  of  American 
Academy  of  Political  and  Social  Science,  Vol.  44,  pp.  28-38  ;  H.  F. 
Stimpson,  "Manager  and  Scientist,"  Cassier,  Vol.  41,  pp.  319-325 ; 


68  ECONOMICS   OF  EFFICIENCY 

H  F  Stimpson,  "The  General  Manager,"  The  Efficiency  Society, 
Transactions,  Vol.  I,  pp.  231-236;  J.  F.  Stromback,  Packing 
to  Save  Freight,"  System,  Vol.  23,  pp.  98-105  ;  H.  Tipper,  Effi- 
ciency Advertising,"  Greater  Efficiency,  Vol.  3,  PP-  3 3-41 1  i^- 
Walker,  ''Scientific  Management  Applied  to  Commercial  Fnter- 
prises  "  Journal  of  Political  Economy,  Vol.  21,  pp.  388-399  I  ^•^• 
WooUey,  "The  New  Game  of  Business  Management,  World  io- 
day,  Vol.  21,  pp.  17 56-1 762. 


CHAPTER  IV 

Management  and  Labor 

From  the  introduction  of  the  factory  system  until 
near  the  close  of  the  last  century,  machinery  and  ma- 
terials were  carefully  studied  to  increase  out-  The  im- 
put,  but  labor  passed  unnoticed.     It  is  only  portanceof 
recently  that  employers  recognized  the  im-  factor^^y 
portance  of  the  human  factor  in  the  making  recently 
and  in  the  marketing  of  goods.     The  men  recognized, 
whose  heads  and  hands  perform  the  labor  in  our  in- 
dustrial system  are  the  chief  factors  of  efficiency  and 
success.     The  study  of  the  workman  in  order  to  under- 
stand  the  various    elements    that    affect   his    working 
power  is  an  important  and  serious  problem  for  every 
management.     The  management  should  deal  with  the 
worker  as  he  is,  and  should  reahze  that  dealing  with 
theories  and  ideals  can  only  result  in  inefhciency.     An 
attendant  should  thoroughly  know  his  machine  to  get 
the  best  results  from  its  working.     This  has  been  rec- 
ognized since  the  introduction  of  machinery,  but  the 
management  has  not  fully  grasped  the  necessity  of  under- 
standing and  knowing  workmen  in  order  that  the  best 
results  may  be  obtained  from  the  efforts  that  they  put 
forth. 

It  is   surprising   how   long   ignorance   governed   the 
relation  between  employers  and  employees.   Formerly  no 
Business    men  paid  close  attention   to  ma-  thought 
chines  and  equipment,  but  when  it  came  to   given  to  the 
the  human  heads  and  hands  which  made  the 
foregoing  productive,  little  or  no  thought  was  given. 

69 


70  ECONOMICS  OF  EFFICIENCY 

No  attempt  was  made  to  study  the  demands  of  work 
in  order  to  obtain  men  fitted  for  its  performance.  The 
employer  did  not  realize  that  health  is  a  prime  requisite 
for  good  work.  No  attempt  was  made  to  study  the 
working  force,  and  to  find  the  environments  and  the 
conditions  of  work  most  conducive  to  health  and  work. 
No  efforts  were  made  to  study  methods  of  performance 
of  work  in  order  to  ascertain  best  methods,  to  train 
workers  in  best  methods,  and  to  give  proper  induce- 
ments, so  that  work  would  be  performed  according  to 
standard  methods,  and  as  nearly  as  possible  in  standard 
time.  Little  thought  was  given  to  cooperation,  loyalty, 
and  enthusiasm,  three  prerequisites  for  efficiency.  In 
obtaining  efficiency  in  any  business  enterprise,  the  most 
serious  problem  for  any  management  to  solve  is  the 
human.  The  human  worker  should  be  studied  as  care- 
fully as  a  complicated  machine  in  order  to  ascertain 
conditions  of  work,  environments,  and  methods  of  work 
most  conducive  to  efficiency. 

The  cooperation  of  employees  is  an  absolute  essential 
for  efficient  work,  for  without  it  efficiency  is  impossible. 
Coopera-  Cooperation,  or  the  act  of  working  together 
tion;  a  for  a  common  purpose,  is  a  basis  of  our  modern 
requisite  for  industrial  development.  Hearty  cooperation 
e  ciency.  between  the  management  and  the  employees  is 
the  main  strength  of  every  business  enterprise,  and  in- 
creases the  efficiency  of  both  capital  and  labor.  To 
enhst  the  mutual  interest  and  the  hearty  support  of 
the  worker  is  one  of  the  most  important  tasks  of  the 
management,  and  success  frequently  hinges  upon  its 
solution.  To  obtain  their  cooperation,  men  should  be 
given  a  square  deal,  proper  treatment,  and  a  just  re- 
ward for  services.  They  should  have  some  share  in 
devising  methods  and  plans,  be  made  to  feel  that  they 
are  integral  parts  of  an  organization,   consulted  con- 


MANAGEMENT  AND  LABOR  71 

cerning  difficulties,  and  encouraged  to  suggest  ways 
of  overcoming  them.  Working  together  with  the  in- 
terest of  the  enterprise  at  heart  is  the  proper  spirit  of 
workers,  and  should  be  sought  by  every  management. 
Cooperation  has  two  sides,  but  the  management  fre- 
quently sees  but  one.  It  beheves  that  workers  should 
cooperate  to  produce  efficient  results,  but  is  blind  to 
the  fact  that  it  should  cooperate  with  the  men  to  as- 
sist them  to  obtain  a  higher  wage.  True  cooperation 
cannot  exist  without  mutual  benefits.  Management 
and  workers  should  each  obtain  what  they  are  striving 
for:  the  management,  low  costs;  the  workers,  higher 
wages.  In  every  form  of  business,  true  cooperation  is 
more  than  a  theory ;  it  is  a  necessity,  and  its  impor- 
tance is  gradually  being  impressed  upon  every  manage- 
ment. 

Personality  is  an  important  factor  in  successful  busi- 
ness, and  is  the  element  which  makes  effective  organ- 
ization possible.  Personality  is  the  strongest  Personality; 
bond  between  men  and  management,  the  itsim- 
foundation  of  confidence,  the  basis  of  per-  po^t^°<^®- 
manent  growth,  and  the  living  spirit  of  an  organization. 
Dominating  every  business  enterprise  is  a  controlling 
force,  a  ''man  behind"  whose  personality  stimulates 
into  action  and  guides  the  whole  working  force.  Such 
a  man  should  have  character  and  strength,  combined 
with  kindliness  and  good  wishes  towards  his  men.  He 
should  always  keep  in  touch  with  his  men,  and  be  ever 
ready  to  discuss  any  differences  which  may  arise.  Im- 
partiaKty  in  dealing  with  men  is  a  virtue.  Nothing 
fosters  discontent,  creates  friction,  and  throws  the 
whole  working  force  into  confusion  more  quickly  than 
favoritism.  Angry  words,  harshness,  and  injustice 
destroy  enthusiasm,  interest,  and  loyalty,  and  have  no 
place  in  any  business  aiming  at  increasing  efficiency. 


72  ECONOMICS  OF  EFFICIENCY 

The  attitude  which  men  have  towards  a  business  is 
governed  almost  entirely  by  their  feelings  toward  the 
Ri  hts  of  ^^^  "^^^  directs  them  from  day  to  day.  It 
workers  should  not  be  forgotten  that  men  are  not  bits 
should  be  of  machinery,  but  men,  and  as  such  possess 
respecte  .  certain  rights  which  should  be  respected. 
Recognition  of  the  rights  of  workers  and  the  making 
them  feel  that  they  are  integral  parts  of  an  organization 
prevent  friction  and  work  toward  efficiency.  A  meas- 
ure of  efficiency  is  the  extent  to  which  the  cooperation 
and  the  enthusiasm  of  the  working  force  is  sustained 
throughout  an  organization.  The  success  of  an  organ- 
ization depends  largely  upon  the  choice  of  the  proper 
head,  a  man  who  has  character  and  strength  to  main- 
tain the  personality  of  the  organization.  Many  busi- 
ness enterprises  fail  through  having  the  personality  of 
the  organization  destroyed  by  a  weak  head.  It  matters 
not  the  kind  of  business  undertaking :  success  depends, 
in  a  great  measure,  upon  the  proper  relationship  exist- 
ing between  the  management  and  the  workers. 

There  is  a  moral  obhgation  due  the  management  from 
every  employee  to  give  his  best  mental  as  well  as  his 
Duty  of  ^^^^  physical  efforts.  This  service  is  not  fully 
employees  performed  unless  the  men  become  interested 
to  em-  and  enthusiastic  in  their  work,  and  work  with 

pioyers.  ^j^^.^  whole  heart  for  the  success  and  the  wel- 
fare of  the  business.  To  obtain  and  to  preserve  this 
attitude  of  employees  toward  management  and  work 
should  be  an  aim  of  every  management.  The  manage- 
ment should  make  the  employees  feel  that  they  have 
a  stake  in  the  success  of  the  business,  and  that  the  man- 
agement has  an  interest  in  their  welfare.  Then  the 
men  will  feel  that  they  are  a  part  of  the  business,  and 
not  like  a  cog  in  one  large  wheel.  Each  will  work  for 
the  other's  welfare,  and  all  for  greater  efficiency  and 
for  the  success  of  the  business  enterprise. 


MANAGEMENT  AND  LABOR  73 

The  efficiency  of  workers  is  an  important  source  of 
profits.  Nothing  affects  efficiency  more  strongly  than 
the  interest  which  each  worker  takes  in  his  Enthusi- 
work.  The  aim  of  every  management  should  asm;  its 
be  to  increase  not  only  this  interest,  but  loyalty,  in^po^tance. 
Wherever  there  is  a  lack  of  interest  and  loyalty,  there 
is  no  enthusiasm,  and  without  enthusiasm  efficiency  is 
impossible.  Cooperation  and  loyalty  should  be  whole- 
hearted, and  then  we  have  enthusiasm.  Enthusiasm 
once  aroused  needs  only  direction  to  turn  it  into  suc- 
cess. Efficiency  is  largely  a  matter  of  cooperation, 
loyalty,  and  enthusiasm  on  the  part  of  the  working 
force.  How  to  treat  employees  so  as  to  obtain  their 
cooperation  and  to  arouse  their  interest,  loyalty,  and 
enthusiasm  is  one  of  the  most  difficult  problems  which 
confronts  every  management,  and  its  successful  solu- 
tion paves  the  way  for  increased  efficiency. 

The  presence  of  loyalty  in  any  business  is  an  important 
factor  working  towards  greater  efficiency.  The  amount 
of  work  which  any  person  may  do  is  subject  to  Loyalty  a 
many  various  conditions.  Intellect,  feeling,  requisite  for 
and  will  should  work  together  in  order  to  ob-  efficiency, 
tain  the  best  results.  Where  there  is  no  feeling  or  heart 
in  the  work,  a  serious  handicap  to  good  work  exists, 
even  if  the  intellect  and  the  will  be  strained  to  the  ut- 
most. The  worker  who  is  not  loyal  to  the  management 
can  render  only  half-hearted  service,  even  though  he 
strives  to  his  utmost.  The  management  which  secures 
the  loyalty  of  its  working  force  has  a  valuable  factor 
working  towards  efficiency. 

Most  men  are  capable  of  following  a  worthy  leader; 
few  are  ever  zealots  for  the  sake  of  a  cause,  a  principle, 
or  a  corporation.  All  these  are  too  abstract  to  win  the 
affection  of  the  average  man.  It  is  the  individual,  the 
concrete  personality  who  attracts  human  interest.     The 


74  ECONOMICS  OF  EFFICIENCY 

worker  is  loyal  to  his  immediate  foreman,  or  to  the  head 
of  a  business  enterprise,  rather  than  to  the  business  it- 
self. Loyalty  to  a  business  enterprise  de- 
business^  velops  from  loyalty  to  those  performing 
develops  managerial  functions.  A  first  essential  is  to 
from  loyalty  pj^ce  men  of  character  in  all  executive  offices, 

lO  DOSS6S 

men  who  are  leaders,  and  who  inspire  men, 
and  win  their  loyal  support.  If  such  is  the  case,  loyalty 
to  the  business  is  assured.  Loyalty  is  reciprocal.  If  a 
worker  feels  that  he  has  no  assurance  of  fair  treatment 
from  the  management,  it  is  impossible  to  arouse  interest 
and  loyalty  to  the  management.  A  square  deal  is  one 
indispensable  basis  of  loyalty,  cooperation,  and  en- 
thusiasm. 

Human  sympathy  is  an  important  factor  in  every 
business  enterprise.  If  the  executive  head  of  an  or- 
The  impor-  ganization  knows  that  the  directors  appreciate 
tance  of  his  efforts  and  are  ever  ready  to  back  him  in 
sympathy,  ^^y.  (;.j-jsis,  his  enthusiasm  and  energy  for  the 
success  of  the  enterprise  never  flag.  If  foremen  and 
superintendents  know  that  the  manager  is  watching 
their  efforts  with  interest  and  regard,  approving,  sup- 
porting, and  sparing  them  wherever  possible,  they  will 
place  their  entire  mind,  energy,  heart,  and  enthusiasm 
in  their  work  in  order  to  obtain  the  greatest  possible 
results.  If  a  worker  knows  that  his  superintendent  is 
interested  in  him,  and  that  he  knows  the  service  being 
rendered,  he  will  put  his  heart  into  his  work,  and  have 
an  interest  in  the  success  of  the  business.  To  secure 
efficiency,  sympathy  of  the  man  above  with  the  man 
below  is  essential  and  necessary. 

Incentive  and  efficiency  are  closely  related.  It  must 
be  granted  that  men  will  not  increase  their  efficiency 
without  some  incentive.  Workers  cannot  be  expected 
to  use  their  best  abihty  unless  they  feel  that  they  are 


MANAGEMENT  AND  LABOR  75 

getting  good  returns  for  it.     The  management  should 
give  its  workers  some  incentive,  hope  of  reward,  hope 
of  promotion,  better  working  conditions,  and,  incentive  is 
better  still,  if  a  union  of  all  these  elements,  necessary 
Sometimes  a  worker  feels  that  it   is   to   his  ^^r  greater 
interest  to  give  just  as  httle  work  as  possible  ®  °^*^' 
for  the  wages  which  he  is  receiving,  and  to  make  the 
management  feel  that  he  is  giving  a  full  day's  work. 
If  in  addition  to  compensation  there  is  the   extra  in- 
centive of  proper  working  conditions,  benefits,  insur- 
ance,  etc.,    the   employer   possesses   means   that   hold 
the    workers    in    an    organization    and    increase    their 
efficiency. 

The  handhng  of  men  is  a  problem  which  tests  the 
ability  of  the  management,  and  is  one  w^hich  is  a  factor 
in  increasing  the  efficiency  of  a  business  enter-  Methods  of 
prise.     Two  methods  are  in  practice  for  han-  handling 
dhng  men,  one,  typical  of  the  last  century,  is  °^®°- 
driving,  while  the  other,  needed  to  increase  efficiency, 
is  leading.     The  ignorant  workman  may  be  driven  to 
his  task,  but  with  the  intelligent  or  skilled      .  . 
workman,  driving  is  a  failure.     Driving  pro- 
duces   discontent,    fosters    antagonism,    and    prevents 
loyalty  and  enthusiasm.     Skill  rather  than  brawn  and 
muscle  is  needed,  and  to  obtain  skilled  men  with  brains, 
and  to  get  them  to  do  their  best  work,  they  should  not 
be  treated  hke  bits  of  machinery,  or  driven  Kke  dumb 
brutes,   but   led   through   their   own   self-interest.     To 
understand  the  worker  is  an  important  problem,  and 
one  which  demands  much  study  from  the  management. 
The   manager   should   be   a   close   student   of    human 
nature,  and  should  know  his  workers  as  they  are,  and 
not  as  they  are  supposed  to  be.     Efficiency 
requires   the   cooperation   of  employers  and     ^^  ^^^* 
employees,  and  this   demands   that   employees   be  led 


76  ECONOMICS  OF  EFFICIENCY 

through  self-interest.  The  question  of  leading,  through 
the  arousing  of  self-interest,  is  an  important  problem 
of  the  future,  and  its  successful  solution  insures  enthu- 
siasm, cooperation,  and  efi&ciency,  the  goal  of  industrial 
activity. 

The  industrial  struggle  is  one  for  profits,  and  the 
management  which  can  produce  with  the  greatest  effi- 
Permanence  ciency  wins.  Employers  have  recently 
in  the  work-  learned  that  an  important  factor  in  lower- 
ing force.  -j^g  costs  is  permanence  in  the  laboring  force. 
Nothing  so  works  against  efficiency  as  a  continuous 
change  in  the  working  force.  Workers,  when  they 
know  that  they  are  hkely  to  be  discharged  any  moment^ 
do  not  have  the  interests  of  the  business  at  hearty  and 
do  not  give  their  best  service.  Experimenting  with 
men  is  costly,  and  the  less  the  management  is  com- 
pelled to  experiment,  the  greater  are  the  possibihties  of 
increasing  efficiency.  During  the  nineteenth  century, 
machines  were  carefully  nurtured  and  protected,  but 
httle  attention  was  paid  to  keeping  men  in  a  business. 
The  employer  failed  to  reahze  the  loss  resulting  from 
constant  hiring  and  dismissing. 

The  desirabihty  of  keeping  men  in  an  organization, 
is  most  forcibly  expressed  in  the  different  pension  sys- 
Methods  of  ^^^^  ^^  ^^^  railroads  and  industrial  enterprises, 
holding  men  They  support  a  pension  fund  as  a  pure  busi- 
in  an  or-  ness  proposition.  The  aim  is  to  hold  out  a  re- 
ganization.  ^g^j.^  ^]^g^^  appeals  to  the  worker  with  greater 
force  than  some  future  inducement  to  go  elsewhere. 
From  the  management's  standpoint,  the  pension  is  the 
premium  that  it  is  willing  to  pay  for  continuity  of  serv- 
ice, and  the  increased  efficiency  which  it  affords.  Effi- 
ciency demands  not  only  a  high-grade  and  efficient  work- 
ing force,  but  one  where  the  fewest  changes  take  place. 
Many  influences  may  be  developed  to  hold  workers  in  an 


MANAGEMENT  AND  LABOR  77 

organization.  Money  return  in  some  form  is  perhaps 
the  strongest.  The  worker  who  is  assured  that  the 
longer  he  stays  with  an  organization,  the  larger  will  be 
his  income,  and  that  extra  effort  and  efficiency  will  bring 
greater  reward,  has  the  strongest  kind  of  an  inducement 
to  remain  where  he  is.  Interest  in  work,  personal  con- 
tact with  superiors,  assured  promotion,  good  working 
conditions,  fair  and  just  remuneration  are  the  strongest 
inducements  to  hold  men. 

An  important  factor  working  for  efficiency  is  pro- 
motion from  the  ranks.  Hope  for  the  future  is  the 
chief  incentive  for  giving  best  efforts^  and  a  pj-ojuotion 
hope  which  appeals  most  strongly,  and  gives  from  the 
loyalty  and  enthusiasm  is  advancement,  ranks;  its 
Every  manager  should  make  provision  for  "^p°^*^^^®- 
filling  any  vacancy  which  occurs  from  his  own  working 
force,  and  the  workers  should  be  given  to  understand 
that  vacancies  will  be  filled  from  their  numbers.  Pro- 
motion should  not  be  based  upon  seniority,  but  wholly 
upon  abihty.  Preference  to  seniority  is  only  justified 
when  the  senior  in  service  is  of  equal  ability  with  others 
quahfied  for  promotion  to  a  vacancy.  Promotion  from 
the  ranks  has  been  adopted  by  many  railroads  and  in- 
dustrial enterprises.  Marshall  Field  &  Co.  have  only 
two  managers  who  are  not  promoted  from  the  ranks. 
The  Pennsylvania  Railroad  Company  rigidly  follows 
the  poHcy,  and  one  hundred  and  fifty  of  its  one  hundred 
and  sixty  chief  officials  started  in  lower  positions.  The 
assurance  that  promotion  will  be  made  from  the  ranks 
fosters  ambition,  gives  hope  of  advancement,  and  greater 
satisfaction  and  contentment  with  the  present  position. 
It  encourages  employees  in  their  work  and  arouses 
loyalty  and  cooperation.  The  importance  of  the  poHcy 
is  daily  becoming  more  recognized,  and  its  adoption 
is  spreading  to  all  fields  of  industrial  activity. 


78  ECONOMICS  OF  EFFICIENCY 

A  worker  to  do  his  best  work  should  have  his  mind 
upon  what  he  is  doing.  This  freedom  of  mind  arises 
Content-  largely  from  contentment  and  has  a  great  in- 
ment;  its  fiuence  upon  the  quality  of  work  as  well  as 
importance.  ^^pQ^  the  output.  A  contented  worker  has  a 
positive  money  value.  Contentment  binds  employers 
and  employees  closely  together  and  leads  to  their  co- 
operation for  the  greater  efficiency  of  an  enterprise. 
Working  amidst  gloomy  and  dismal  surroundings,  with 
improper  equipment,  in  fear  of  losing  his  position,  at 
unfair  wages,  or  under  constant  nagging  by  a  rough  and 
surly  boss  causes  a  man  to  have  his  thoughts  upon  any- 
thing except  his  work.  The  worst  frame  of  mind  for 
good  work  is  one  of  continual  brooding  over  being  under- 
paid. Yet  in  how  many  enterprises  do  we  find  one  or 
more  of  these  conditions  prevailing  ?  How  many  have 
failed  as  a  result  of  their  presence?  Many  manufac- 
turers have  well-equipped  factories,  but  there  is  lacking 
the  contented  working  force.  They  have  yet  to  learn 
the  value  of  contentment.  Every  effort  should  be 
made  to  have  working  conditions,  environments  of 
workers  while  at  work  and  at  home,  and  equipment  the 
most  conducive  to  health  and  to  work,  and  with  a  fair 
and  just  remuneration  a  contented  mind  follows.  Many 
employers  have  introduced  welfare  movements  for  the 
benefit  of  their  employees.  These  are  business  invest- 
ments, and  the  contented  mind  obtained  more  than  re- 
pays the  outlay  in  quaHty  of  work  and  in  increase  of 
output. 

Tardiness  in  attendance  is  a  form  of  inefficiency  which 
every  management  should  strive  to  reduce  to  a  mini- 
Tardiness  mum.  Efficiency  demands  not  only  faithful- 
andinef-  ness  in  work,  but  regularity  and  punctuality 
ficiency.  ^^  attendance.  Experience  has  proven  that 
tardiness  cannot  be  overlooked,  and  the  best  way  to 


MANAGEMENT  AND  LABOR  79 

deal  with  it  is  to  make  it  unprofitable.  Fines  are  the 
usual  means  of  enforcing  promptness.  Not  paying  for 
the  time  lost,  the  loss  of  a  day's  pay  if  occurring  a  cer- 
tain number  of  times,  suspension,  and  absolute  discharge 
are  among  the  methods  found  in  practice  for  the  punish- 
ment of  tardiness.  Punishment  in  some  form  is  ab- 
solutely necessary  in  dealing  with  certain  classes  of 
men.  No  one  method  can  be  given  as  practicable  and 
workable  in  all  estabhshments.  One  which  gives  satis- 
faction in  one  business  enterprise  might  be  a  failure 
and  the  cause  of  driving  good  workers  away  in  another. 
The  management  should  remember  that  plant  organiza- 
tion, working  conditions,  the  personnel  and  the  character 
of  employees  are  never  the  same  in  two  places,  j^e^hods 
In  deciding  upon  a  method  for  deahng  with  for  deaUng 
tardiness,  due  consideration  should  be  given  with  tardi- 
to  the  character  of  the  workers,  whether  men 
or  women,  skilled  or  unskilled,  salaried  or  working  by 
the  piece.  If  fines  are  imposed,  the  management  should 
make  it  clear  to  the  workers  that  the  purpose  of  the 
fines  is  punishment,  and  that  they  are  not  a  money- 
making  proposition.  The  only  safe  way  to  deal  with 
fines  collected  is  to  devote  them  to  some  welfare  move- 
ment for  the  workers.  If  fines  are  kept  by  the  man- 
agement, it  inevitably  leads  to  antagonism,  and  works 
against  loyalty  and  enthusiasm. 

Every  management  finds  it  imperative  to  adopt  some 
method  of  ascertaining  whether  or  not  a  worker  is  punc- 
tual in  attendance.  The  time  clock  is  the  Punctuality, 
favorite  method,  but  metal  or  wooden  tags,  Howascer- 
timekeepers,  individual  tickets  punched  at  *^^°®^- 
entrance,  the  matter  left  to  the  direct  supervision  of 
superintendents  or  foremen,  and  daily  work  cards  are 
among  other  methods  found  in  practice.  Many  claim 
that  a  check  upon  the  time  that  a  worker  appears  at 


8o  ECONOMICS  OF  EFFICIENCY 

work  is  not  necessary  and  only  antagonizes  him.  Under 
the  present  industrial  system,  some  method  is  absolutely 
necessary,  and  if  any  trouble  arises,  it  is  usually  on  ac- 
count of  poor  judgment  exercised  in  fixing  the  punish- 
ment, or  in  the  use  of  fines  collected. 

Many  managements  find  it  profitable  to  encourage 
promptness  by  a  system  of  rewards.  An  effective 
Methods  method  is  to  take  promptness  into  considera- 
for  en-  tion  in  increase  of  pay,  or  in  advancement, 

couraging  Some  give  cash  premiums  and  prizes  at  the 
promptness.    ^^^  ^^  ^-^^  ^^^^  ^^  ^jj  ^-^^  h.8i,Ye  not   been 

tardy,  while  some  base  vacations  on  the  timekeeper's 
record,  and  take  account  of  promptness  in  awarding  time 
of  vacation  with  full  pay.  Those  who  have  adopted  the 
award  system  find  it  necessary  to  have  some  system  for 
punishing  tardiness.  If  a  worker  were  tardy  once  or  twice, 
with  no  chance  of  obtaining  a  reward,  there  is  a  tendency 
to  be  careless  about  attendance  in  the  future. 

Irregularity  in  attendance  has  a  direct  bearing  upon 
efficiency,  and  is  a  serious  problem  confronting  every 

management.  The  chief  cause  of  irregularity 
ks  ^caus^*^ '  is  sickness,  and  the  question  to  be  answered  is, 

Who  is  responsible?  The  management  may 
be  the  cause  in  not  having  proper  working  conditions; 
if  so,  the  worker  is  not  to  blame,  and  the  cause  should 
at  once  be  remedied.  On  the  part  of  the  worker,  the 
cause  may  be  lack  of  nourishment,  unsanitary  home 
surroundings,  careless  exposure,  or  intemperance.  The 
management  should  insist  upon  proper  nourishment 
and  proper  sanitary  home  surroundings.  It  should 
take  all  precautions  to  have  working  conditions  and 
surroundings  of  workers  while  at  work  the  most  con- 
ducive to  health.  Careless  exposure  should  be  warned 
against,  and  intemperance  should  not  be  tolerated. 
Reasons  for  absence  from  work  are  many,  and  each  in- 


MANAGEMENT  AND  LABOR  8i 

dividual   case   should   be   dealt  with   separately.     The 
method  of  treatment  should  vary  with  cases,  and  punish- 
ment is  only  advisable  where  the  cause  is  due 
to  negligence,  carelessness,  or  intemperance  on  treatment, 
the  part  of  the  worker.     None  of  these  should 
be  tolerated,  and  dismissal  should  be  the  punishment  for 
the  second  or  third  offense.     A  great  safeguard  against 
irregularity  is  a  healthy  working  force,  working  under 
sanitary  and  wholesome  conditions. 

It  has  been  said  that  95  per  cent  of  the  workers  of 
this  country  are  doing  less  than  60  per  cent  of  what 
they  might  do  without  physical  injury  or  over-  wastes 
exertion.  This  statement  is  perhaps  exag-  from  men 
gerated,  but  it  is  nevertheless  true,  that  a  soldiering, 
great  waste  arises  from  men  loafing,  soldiering,  or  idling 
away  their  time.  Efficiency  demands  that  this  waste 
be  reduced  to  a  minimum,  and  it  is  an  important  prob- 
lem confronting  the  management  to  devise  successful 
methods  of  doing  so.  The  average  worker  is  naturally 
incHned  to  take  things  easy,  and  to  do  the  least  amount 
of  work  necessary  to  keep  from  being  discharged.  This 
is  one  of  the  evils  arising  from  day  wages.  When  all 
are  paid  the  same  wages,  the  more  efficient  worker 
slackens  his  pace  to  that  of  the  lazy  fellow,  because 
why  should  he  do  more  when  he  receives  the  same  pay  ? 

A  great  part  of  soldiering  is  done  by  men  with  the 
dehberate  object  of  keeping  their  employers  in  ignorance 
of  how  fast  work  may  be  done.     Many  de-  soldiering 
liberately  study  how  slowly  they  may  go,  and  is  often 
still  convince  their  employers  that  they  are  <ieUberate. 
going  at  a  rapid  pace.     The  fear  of  making  a   record 
that  will  be  used  as  a  basis  of  future  piece  rate  causes 
men  to  soldier  as  much  as  they  dare.     They  look  upon 
extra  effort  to  earn  more  wages  as  leading  to  a  cut  in 
piece  rate.     As  one  of  the  main  causes  of  soldiering,  the 


82  ECONOMICS  OF  EFFICIENCY 

prevailing  fallacious  belief  among  laboring  men  that 
the  curtailing  of  output  gives  more  employment  should 
not  be  overlooked.  Frequently,  men  do  the  best  they 
can  under  discouraging  conditions  of  work,  and  should 
not  be  criticized  for  not  doing  more.  Soldiering  is 
often  deHberate,  as  wasting  time  to  make  a  job  last, 
so  that  it  will  not  be  necessary  to  change  jobs  at  an  in- 
convenient time.  Men  are  frequently  careless  about 
being  late  in  starting  work,  and  in  stopping  a  few 
minutes  before  closing. 

Soldiering  or  loafing,  in  whatever  form  it  is  found, 
works  against  efficiency,  and  its  reduction  should  demand 
How  to  ^h^    careful     attention    of     every    manage- 

eiiminate  mcnt.  Its  elimination  demands  the  coopera- 
soidienng.  ^^^^  q£  management  and  worker.  The  man- 
agement on  its  part  should  remove  all  causes  for  waste 
of  time  from  inconvenient  plant  equipment.  It  should 
pay  its  workers  wherever  possible  by  piece  rate,  and  in 
the  determination  of  the  rate,  it  should  take  special  care 
that  the  rate  is  based  upon  productivity,  and  that 
workers  receive  a  just  and  fair  reward  for  their  efforts. 
There  is  no  more  effective  way  of  reducing  idleness  than 
to  make  idlers  losers.  Workers  on  their  part  should  be 
prompt  in  starting  work,  faithful  in  attending  machinery, 
and  in  keeping  machines  running  at  full  capacity  while  at 
work,  sincere  in  putting  their  whole  thought  into  what 
they  are  doing,  enthusiastic  and  interested  in  their 
work,  and  loyal  in  their  cooperation  with  the  manage- 
ment for  the  increasing  of  efficiency,  and  for  the  suc- 
cess of  the  business. 

All  human  beings  possess  physical,  mental,  and  moral 
quahties.  These  are  necessary  to  a  greater  or  less  de- 
gree in  all  classes  of  work.  With  unskilled  labor  and 
positions  of  little  importance,  the  physical  is  the  most 
important,  with  the  skilled  trades  and  positions  of  in- 


MANAGEMENT  AND  LABOR  83 

creasing  responsibiKty,  the  mental  grows  in  importance, 
and  with  all  kinds  of  work,  the  moral  is  absolutely  essen- 
tial.    It  matters  not  how  healthy  a  man  is, 
or  what  abiUty  he  has,  if  he  is  dissipated,  he  Jf^hyScai! 
is  physically  and  morally  unfit  to  be  a  mem-  mental  and 
ber  of  a  high-grade   organization.     Dissipa-  "^o^^i  quaii- 
tion  gradually  affects  his  physical  and  mental  workers, 
powers,  weakens  his  sense   of  responsibility, 
increases  irregularity  in  attendance  and  causes  careless- 
ness in  work.     The  dissipated  employee  soon  becomes  a 
derelict  upon  an   organization,  rather  than  an  integral 
part  of  it,  and  his  services  must  soon  be  dispensed  with, 
in  order  to  avoid  friction  and  loss.     The  members  of  a 
high-grade  organization  should  be  healthy,  strong,  and 
vigorous,  possess  the  required  abiHty  for  the  work,  and 
have  a  high  sense  of  moral  duty. 

Every  worker  should  be  responsible  to  some  higher 
authority,  and  there  never  should  be  any  doubt  as  to 
that  authority.  Authority  should  be  so  es-  Authority 
tablished  that  minor  breaches  may  be  ignored  cieariy 
and  pass  unnoticed,  but  when  the  time  comes  ^®^^®<i- 
for  action,  and  when  all  consideration  has  been  given, 
the  management  should  enforce  its  decision  to  the 
letter  and  without  mercy.  Care  should  always  be 
exercised  in  giving  orders  only  through  the  immediate 
boss  or  superintendent.  The  giving  of  orders  by  a 
superior  ofhcial  to  men  who  are  held  responsible  to  a 
lower  official  shows  bad  judgment,  and  has  a  tendency 
to  lower  the  respect  of  the  men  for  the  official  to  whom 
they  are  responsible.  It  should  not  be  forgotten  that 
the  practice  of  showing  authority  for  authority's  sake 
is  bad,  and  breeds  dissatisfaction  and  friction. 

Some  method  of  discipline  is  a  necessity  in  every 
business  enterprise.  It  is  important  that  the  man- 
agement should  have  a  carefully  considered  method  of 


84  ECONOMICS  OF  EFFICIENCY 

disciplining  its  laboring  force.  The  method  should  be 
sufl&ciently  broad,  so  as  to  cover  the  great  variety  of 
DiscipHne;  characters  and  dispositions  found  in  every 
its  im-  working  force.     Some  workers  are  so  conscien- 

portance.  tious  and  dcsirous  of  doing  right  that  the 
sKghtest  word  of  correction  is  all  that  is  required.  There 
are  others  who  mistake  kindly  words  for  timidity  and 
weakness.  With  these,  talk,  either  mild  or  severe,  has 
Httle  or  no  effect,  unless  they  beheve  that  something 
more  severe  and  disagreeable  will  follow.  An  important 
question  for  the  management  to  decide  is  what  will  be 
the  most  effective  method  of  discipline,  and  give  the 
least  interference  with  the  harmonious  working  of  the 
laboring  force.  It  should  be  emphasized  that  with  new 
workers  a  beginning  should  be  made  with  kind  words, 
and  these  repeated  if  necessary  several  times,  until  it 
is  evident  that  kindly  treatment  does  not  produce  the 
desired  effect,  and  then  more  drastic  methods  should  be 
used. 

There  are  many  methods  used  in  enforcing  discipline, 
—  kind  words  and  suggestions,  fining,  laying  off  for  a 
Methods  of  period  of  time,  lowering  wages,  giving  a  series 
enforcing  of  bad  marks,  and  when  they  amount  to  a 
discipline.  certain  number  per  week  or  month,  fining, 
laying  off,  or  lowering  wages,  and  discharge.  Discharge 
is  of  course  the  most  effective,  but  this  should  be  used 
only  in  those  cases  which  are  absolutely  hopeless  of 
correction.  Between  the  first  and  the  last,  it  is  always 
advisable  to  have  many  remedies,  each  more  severe 
than  the  preceding.  Laying  off  and  lowering  wages 
are  too  severe  for  ordinary  breaches  of  discipKne,  and  a 
management  will  hesitate  to  enforce  them.  Men  will 
soon  discover  this,  and  many  will  take  advantage  of  it, 
and  keep  most  of  the  time  close  to  the  limit.  Again, 
these  methods  are  so  drastic  that  if  regularly  enforced. 


MANAGEMENT  AND  LABOR  85 

they  arouse  antagonism  on  the  part  of  the  workers,  and 
prevent  interest  and  enthusiasm  so  essential  for  increas- 
ing the  efficiency  of  a  working  force.  In  laying  men 
off,  a  management  usually  suffers  more  than  the  men, 
through  having  work  delayed,  and  putting  new  men  in 
their  places.  Either  of  the  methods  causes  more  or 
less  friction,  and  interferes  with  the  smooth  working 
of  a  working  force. 

Giving  bad  marks  is  objectionable,  as  many  will  take 
advantage  of  the  system,  and  dehberately  keep  close 
to  the  maximum  of  bad  marks.  The  best  Fining  the 
method  is  that  of  fining.  If  appHed  with  best  method 
judgment,  it  is  to  be  preferred  to  the  others,  ^^f  ?isci- 
and  gives  the  most  satisfactory  results.  Its  ^  ^^^' 
success  depends  upon  impartiahty,  and  upon  sound 
judgment  in  levying  the  fines,  and  in  using  those  col- 
lected to  promote  some  welfare  work  for  the  men.  Under 
no  consideration  should  the  management  retain  the 
fines  collected,  because,  if  so,  the  men  will  beheve  that 
the  purpose  of  fining  is  to  make  money.  This  arouses 
the  workers  against  the  management,  and  prevents 
their  hearty  cooperation  in  their  work.  Exceptional 
cases  may  arise  where  fines  will  not  prove  severe  enough, 
then  the  more  drastic  method  of  lowering  wages  or  lay- 
ing men  off  should  be  used. 

Those  in  supervising  positions  should  always  maintain 
their  dignity.     They  should  be  able  to  control  them- 
selves and  give  reprimands  under   the   most   Qualities 
trying    circumstances,    without    losing    their  essential  in 
temper.     They  should  be  firm,  dignified,  and  superin- 
always  ready  to  help,  and  to  work  with  their  *®°  ^^  ^' 
men,  as  well  as  direct  them.     They  should  be  approach- 
able, sympathetic,  and  mingle  with  their  men,  and  take 
an  interest  in  their  welfare,  but  should  not  allow  famil- 
iarity, because  it  breeds  a  feeHng  of  disrespect  towards 


86  ECONOMICS   OF  EFFICIENCY 

themselves.  They  should  be  entirely  free  from  favorit- 
ism, and  able  to  treat  every  case  on  its  merits.  Dis- 
cipline is  then  not  difhcult.  In  every  business  enter- 
prise, from  the  executive  head  down  to  the  humblest 
worker,  discipKne  should  be  maintained. 

A  close  man-to-man  relationship  between  employer 
and  employee  is  priceless.  It  arouses  interest,  enthu- 
siasm, and  loyalty,  three  necessary  essentials 
teJfdeSs;  f^r  efhcicncy.  The  management  should  be 
importance  able  to  select  the  right  foremen  for  the  dif- 
of  their         ferent  places,  —  men  who  are  not  only  best 

selection.         _         i    r         i  •  •  ^  i      i  f 

ntted  tor  the  positions,  but  who  know  how  to 
arouse  loyalty  with  resulting  cooperation.  It  is  said 
that  Andrew  Carnegie  seldom  made  a  mistake  in  pick- 
ing the  right  man  for  the  right  place,  and  his  success 
is  largely  due  to  this  ability.  The  selection  of  proper 
superintendents,  men  who  know  how  to  handle  men,  is 
of  much  more  importance  to-day  than  ever  before,  and 
continues  to  increase  in  importance  as  the  business 
units  grow  in  size,  and  the  individual  employee  is  further 
removed  from  the  executive  head  of  the  business.  Men 
who  know  how  to  get  maximum  results  from  machines 
are  common,  but  men  who  know  how  to  get  cooperation, 
and  the  greatest  efficiency  from  the  human  element,  are 
rare. 

QUESTIONS 

1 .  What  is  cooperation  and  why  is  it  a  necessity  for  efficiency  ? 

2.  Why  is  personality  a  necessity  for  effective  organization? 

3.  What  arouses  enthusiasm  ?     Give  its  bearing  upon  efficiency. 

4.  Give  the  source  of  loyalty  and  state  its  importance  in  a 
working  force. 

5.  Mention  and  give  the  importance  of  the  various  incentives 
to  increase  efforts. 

6.  What  is  the  relation  between  permanency  in  a  working  force 
and  efficiency  ?     Mention  methods  used  to  assure  permanency. 

7.  What  is  the  importance  of  promotion  from  the  ranks  ? 


MANAGEMENT  AND  LABOR  87 

8.  What  bearing  has  contentment  upon  efficient  work  ?     What 
causes  a  contented  working  force  ? 

9.  Mention  methods  of  deaHng  with  tardiness.     What  do  you 
consider  the  best  method,  and  why  ? 

10.  What  are  causes  of  irregularity  ?   How  should  it  be  treated  ? 

11.  What  is  soldiering?     Give  causes.     How  can  it  be  elimi- 
nated ? 

12.  Why  should  authority  be  clearly  defined? 

13.  Mention  different  methods  of  enforcing  discipline.     Which 
do  you  prefer  and  why  ? 

14.  What  qualities  are  essential  in  superintendents? 

15.  How  may  the  proper  relationship  be  maintained  between 
superintendents  and  men  ? 


REFERENCES 

Books 

N.  A.  Brisco,  "Economics  of  Business,"  Ch.  IX;  The  Business 
Man's  Library,  Vol.  IX,  "Personality  in  Business"  ;  E.  Cadbury, 
"Experiments  in  Industrial  Organization,"  Ch.  Ill;  C.  U.  Car- 
penter, "Profit  Making  in  Shop  and  Factory  Management," 
Ch.  II;  H.  Diemer,  "Factory  Organization  and  Administration," 
Ch.  XXV;  H.  A.  Evans,  "Cost  Keeping  and  Scientific  Manage- 
ment," Chs.  IX,  XI,  XII;  L.  Galloway,  "Organization  and 
Management,"  Part  II,  Ch.  VIII;  J.  Hartness,  "The  Human 
Factor  in  Works  Management,"  Ch.  V;  W.  C.  Redfield,  "The 
New  Industrial  Day,"  Chs.  VI,  VII,  VIII,  IX;  W.  G.  Rose, 
"Success  in  Business,"  Part  II;  The  System  Co.,  "How  to  Handle 
Workmen,"  Ch.  V;  W.  D.  Scott,  "Increasing  Human  Efficiency 
in  Business,"  Chs.  II-VII ;  J.  W.  Schulze,  "The  American  Office," 
Chs.  VII,  VIII,  X;  F.  E.  Webner,  "Factory  Costs,"  Ch.  II; 
H.  A.  Norman,  "How  to  Get  Workmen,"  Ch.  VI. 

Articles 

H.  W.  Ambruster,  "Getting  Employees  to  Work  on  Time," 
System,  Vol.  18,  pp.  484-491;  G.  H.  Barbour,  "Personality  in 
the  Working  Force,"  System,  Vol.  12,  pp.  112-116 ;  O.  M.  Becker, 
"The  Common  Sense  of  the  Management  of  Men,"  Engineering 
Magazine,  Vol.  30,  pp.  536-554;   O.  M.  Becker,  "What  Can  Be 


88  ECONOMICS  OF  EFFICIENCY 

Done  with  the  Workers  ?  "  Engineering  Magazine,  Vol.  30,  pp.  823- 
849;  O.  M.  Becker,  ''Restoring  the  Personal  Touch,"  American 
Machinist,  Vol.  35,  pp.  393-39S ;  J.  Bismer,  "The  Driving  Power 
of  Enthusiasm,"  System,  Vol.  20,  pp.  252-261 ;  S.  H.  Bunnell, 
"The  Human  Side  of  Business  Organization,"  Iron  Age,  Vol.  89, 
p.  29;  S.  H.  Bunnell,  "Factory  'Red  Tape'  as  a  Life-Line," 
Iron  Age,  Vol.  91,  pp.  586-587;  J.  F.  Cairns,  "Promotion  of 
Employees,"  Gassier,  Vol.  32,  pp.  420-426;  F.  H.  Colvin,  "Per- 
sonality in  Shop  Management,"  American  Machinist,  Vol.  35, 
pp.  439-440 ;  J.  M.  Dodge,  "Living  in  Harmony  with  your  Work- 
men," Industrial  Engineering,  Vol.  14,  pp.  7-9;  F.  M.  Feiker, 
"When  Men  Will  Do  Their  Best,"  System,  Vol.  20,  pp.  60-66; 
L.  H.  Gulick,  "The  Human  Element,"  The  Efficiency  Society 
Transactions,  Vol.  I,  pp.  181-186 ;  W.  M.  McFarland,  "The  Basic 
Cause  of  Increased  Efficiency,"  Engineering  Magazine,  Vol.  36, 
pp.  329-335 ;  M.  W.  Mix,  "Human  Element  in  Efficiency  Work," 
Iron  Age,  Vol.  92,  p.  753;  C.  D.  Murphy,  "Spur  of  Pay  and 
Promotion,"  System,  Vol.  23,  pp.  562-570;  C.  C.  Myers,  "A 
Rational  Treatment  of  Labor,"  Sibley  Journal  of  Engineering, 
Vol.  21,  pp.  214-217;  W.  Osborne,  "What  Makes  a  Shop  Pleas- 
ant to  Men?"  American  Machinist,  Vol.  40,  pp.  460-462;  H. 
Robbins,  "The  Personal  Factor  in  the  Labor  Problem,"  Atlantic 
Monthly,  Vol.  99,  pp.  729-736;  L.  H.  Thompson,  "The  Spirit  of 
Cooperation,"  System,  Vol.  10,  pp.  124-125;  A.  H.  Thorpe, 
"Enthusiasm,"  Modern  Methods,  Vol.  20,  pp.  832-833;  A.  M. 
Ward,  "  Personal  Power  in  Business,"  System,  Vol.  1 1,  pp.  340-344 ; 
"Do  Men  Like  to  Work?"  Factory,  Vol.  10,  p.  435;  "The 
Human  Element,"  Machinery,  Vol.  16,  p.  SS' 


CHAPTER  V 

Methods 

During  the  past  two  decades,  many  changes  have 
taken  place  in  the  attitude  of  business  men  toward 
problems  that  they  face,  and  means  that  they  Guesswork 
control.     Increased  competition  cut  the  mar-  and  igno- 
gins   of   profit,    and   if   American  industries  ranee  in 
were   to   continue   to   flourish   and   expand,     ^^^°®^s- 
methods  must  be  devised  for  lowering  the  costs  of  pro- 
duction.    The  struggle  for  lower  costs  directed  the  at- 
tention of  a  few  business  men  to  a  study  of  the  internal 
workings  of  their  enterprises.     The  discovery  was  soon 
made  that  almost  the  entire  operations  of  their  business 
undertakings  were  based  on  guesswork  and  ignorance, 
rather  than  knowledge.     It  was  found   that  men  in 
executive  positions,  as  well  as  workers,  had  Perform- 
little  knowledge  of  how  best  to  perform  opera-  ance  of 
tions,  and  what  was  most  conducive  to  best  ^°^^' 
performance.     The  business  men  were  amazed  at  the 
great  amount  of  work  that  was  performed  haphazard,  and 
by  guesswork.     They  were  astonished  at  the  waste  which 
existed  in  their  business  enterprises  through  the  presence 
of  unscientific  methods  of  doing  work,  and  of  conduct- 
ing enterprises.     They  realized  the  necessity  of  ascertain- 
ing knowledge  of  how  best  to  work,  and  the  saving,  if 
similar  tasks  were  performed,  according  to  the  best  pos- 
sible methods,  with  the  best  possible  equipment,  and 
under  conditions  most  conducive  to  work. 

89 


go  ECONOMICS  OF  EFFICIENCY 

The  methods  found  in  the  average  business  enterprise 
are  not  the  result  of  carefully  and  properly  conducted 
The  old  investigation,  but  are  what  are  guessed  to  be 
method  of  best  by  the  management  and  the  workers.  It 
doing  work,  jg  seldom  that  in  the  same  plant  you  find  the 
same  movements  in  the  performance  of  similar  tasks. 
The  old  way  is  to  allow  men  to  learn  by  observing  others 
work.  They  are  not  taught  what  methods  are  best, 
but  are  left  to  choose  their  own.  The  goal  is  to  reach 
the  one  result,  the  performance  of  the  task,  and 
effects  ^^^^  worker  is  left  to  the  choice  of  his  own 

movements  in  the  reaching  of  this  goal. 
Habits  are  formed,  and  workers  continue  to  perform 
their  work  with  unnecessary  and  improper  movements. 
Men  when  they  are  left  to  themselves  to  discover  by 
observation  methods  of  work  do  not  discover  the  best 
methods  of  performance.  The  old  way  and  the  one 
that  is  in  common  practice  is  to  put  everything  up  to 
the  worker.  It  frequently  happens  that  a  man  work- 
ing as  hard  as  he  can,  falls  short  of  what  could  be  done, 
on  account  of  making  unnecessary  movements,  and  of 
employing  inferior  methods  in  his  work.  It  is  only 
during  the  last  few  years  that  a  few  progressive  business 
men  have  realized  that  there  are  many  opportunities 
for  better  ways  of  doing  things,  ways  which  bring  greater 
efficiency  and  increased  profits.  The  great  need  is  to 
make  all  business  men  realize  this  necessity,  and  have 
work  performed  by  properly  directed  energy  and  by 
scientifically  discovered  methods. 

Every  operation  in  a  business  enterprise  may  be  per- 
formed in  a  number  of  ways,  and  it  is  evident  that  all 
The  one  ^^e  not  equally  efficient.  As  a  rule,  many  are 
best  way  of  SO  inefficient  that  if  only  a  sKght  investigation 
domg  work.  ^^^^  made,  they  would  be  at  once  discarded. 
There  is  one  best  way  to  do  a  piece  of  work,  and  that  is 


METHODS  91 

what  is  needed  in  every  business  enterprise.  Few 
workers  know  the  best  way  of  doing  a  task,  and  few 
have  the  ability  to  investigate  different  Notdis- 
methods  and  select  the  one  which  is  best,  covered  by 
Not  only  the  workers,  but  even  the  manage-  worker, 
ment  cannot  know  at  random,  or  guess,  the  best  method  of 
doing  a  piece  of  work.  Again,  workers  in  the  past,  and 
in  the  average  plant  of  to-day,  decide  methods  of  per- 
forming work,  and  these  become  habits.  They  cHng 
tenaciously  to  their  habits  of  work.  Men  usually  refuse 
to  be  shown  a  better  and  easier  way,  declaring  that  their 
own  is  good  enough  for  them.  The  old  way  of  allowing 
workers  to  choose  the  methods  of  work  which  they  are 
to  use,  should  be  discarded  on  account  of  its  inefficiency^ 
and  there  should  be  adopted  and  used  in  every  plant, 
standard  methods  previously  determined  by  the  manage- 
ment. 

A  management  should  decide  what  is  the  best  method 
of  doing  work,  and  then  introduce  it  in  its  plant.  Mr. 
Taylor  gives  the  key  for  performance  of  work  Guesswork 
in  stating  that  you  should  know  exactly  what  precedent, ' 
you  want  men  to  do,  and  then  see  that  they  do  and  usage 
it  in  the  best  and  cheapest  way.  The  per- 
formance of  work  is  usually  based  upon  precedent  and 
estabhshed  usages.  The  discovery  of  the  one  best  way 
demands  the  casting  aside  of  guesswork,  precedent,  and 
usage.  Knowledge  is  the  one  chief  essential  to  best 
performance,  and  should  be  ascertained  by  the  man- 
agement through  experts.  Thorough  investigation 
should  be  made  of  the  performance  of  work,  and  the 
best  way  ascertained.  The  best  way  is  the  one  best 
with  conditions  existing  in  the  particular  plant  where 
it  is  to  be  adopted.  There  should  be  a  clear  under- 
standing of  what  is  to  be  done,  and  nothing  left  to  guess. 
The  one  best  method  should  be  made  standard,  should 


92  ECONOMICS  OF  EFFICIENCY 

be  the  only  one  allowed,  and  should  be  constantly  and 
consistently  followed. 

The  only  way  to  determine  the  best  method  of  per- 
formance of  work  is  to  ascertain  it  by  scientific  inves- 
_,  tigation,  because  if  it  were  not  so  ascertained, 

methods  of  differences  of  opinion  would  exist  as  to  the 
the  average  bcst.  The  average  worker  who  performs  an 
worker.  operation  in  a  certain  way  imagines  that  he 
knows  all  about  the  performance  of  the  work,  and  scoffs 
at  the  intimation  that  there  might  possibly  be  a  better 
and  more  efficient  way  of  doing  it.  Let  the  average  man- 
agement carefully  analyze  the  methods  used  in  its  plant, 
and  it  will  find  that  the  great  majority  are  inherited 
from  the  past,  or  slavishly  adopted  from  observing 
others,  and  httle  knowledge  exists  as  to  whether  they 
are  the  best  for  the  performance  of  the  work.  With 
no  uniformity  of  methods  for  performing  similar  tasks, 
and  httle  or  no  knowledge  as  to  what  is  the  best  method, 
there  is  no  ground  for  forming  any  opinion  as  to  the 
efficiency  existing  in  a  plant. 

Experience  has  proved  that  the  average  worker, 
skilled  or  unskilled,  has  httle  or  no  accurate  knowledge 
A  reason-  of  the  amount  of  work  that  he  can  perform  in 
able  day's  a  given  time,  or  of  his  efficiency.  Neither  the 
^ork.  worker  nor  the  management  in  the  average 

plant  knows  the  best  method  of  performance,  or  how 
much  an  individual  at  his  chosen  work  can  accom- 
phsh.  With  no  understanding  as  to  best  methods,  how 
is  it  possible  to  obtain  the  greatest  efficiency  and 
best  results  with  the  least  waste  ?  Not  only  the  best 
methods,  but  what  constitutes  a  reasonable  day's  work, 
can  only  be  determined  by  scientific  investigation  and 
intelligent  observation. 

Many  business  men,  even  to-day,  believe  that  it  is 
a  waste  of  time  to  study  theoretical  principles  under- 


METHODS  93 

lying  business  activities,  and  declare  that  scientific  inves- 
tigation and  methods  have  their  place  elsewhere  than  in 
business.     They  have  yet  to  reahze  that  no  Theoretical 
operation  is  so  simple  that  it  does  not  in  some  principles 
way  involve  the  appKcation  of  a  theoretical  underlying 
principle.     Business  methods  and  practices  are 
based  upon  theoretical  principles.     Business  is  gradually 
being  reduced  to  a  science,  and  business  activities  should 
be  studied  and  scientifically  investigated,  as  phenomena 
in  the  field  of  science.     The  sooner  business  men  realize 
that  scientific  investigation  and  research  are  as  necessary 
in  business  as  in  the  sciences,  the  greater  will  be  the  advance 
in  efficiency.     They  must  reahze  that  rightly 
appHed  theory  goes  hand  in  hand  with  practice,  pr^ctice!'^* 
The  theoretical  principle  should  be  known, 
and  its  appHcation  should  be  the  result  of  scientific  in- 
vestigation and  careful  experimentation.     If  theory  and 
practice  appear  to  disagree,  then  theory  or  practice  is 
wrong.     The  fault  lies  with  the  management  in  not 
knowing  the  underlying  principle,  or  in  not  making  a 
proper  application  of  it.     The  man  who  looks  upon 
theory  as  something  abstract,  and  entirely  foreign  to 
business  activities,  merely  declares  his  ignorance.     Busi- 
ness men  should  become  awakened  to    the   fact    that 
business  is  a  science,   and  that  successful  business  is 
based  upon  certain  fundamental  principles  which  under- 
lie business  activities,  irrespective  of  whether   or   not 
they  are  recognized  by  them.     The  application  of  scien- 
tific method  to  business  activity  is  a  necessity,  and  is  a 
demand  of  efficiency.     Its  resulting  influence  in  lower- 
ing expenses  and  increasing  profits  should  be  sufficient 
inducement  to  win  over  the  average  business  man  to 
the  necessity  of  scientific  investigation  in   order  to  ob- 
tain scientific  methods  of  performance  of  work,  and  their 
introduction  and  consistent  following  throughout  a  plant. 


94  ECONOMICS   OF  EFFICIENCY 

Motion  and  time  studies  are  the  scientific  methods 
used  to  discover  the  best  way  to  perform  any  operation. 
Scientific       These  studies  provide  the  necessary  informa- 
method  to      tion  for  ascertaining  the  most  efficient  way 
discover        to  perform  a  task.     Every  operation  is  divided 
way.       .^^^  i^g  elements  or  unit  operations.     Time 
study  is  the  act  of  analyzing,  recording,  and  synthesizing 
the  time  necessary  to  perform  the  elements  of  an  opera- 
tion.    There   is   no   operation   which   is   too 
ime  s  u  y.    g-^^pj^  ^^  ^^^  complex  to  allow  of  this  analy- 
sis, and  which  will  not  repay  scientific  study,  to  ascer- 
tain the  best  way  of  performance.     Time  study  is  made 
with  a  stop  watch  and  a  sheet  of  paper,  upon  which  is 
noted    observations.     Motion    study    is    the 
study^  careful  study  and  observation  of  the  move- 

ments making  up  each  element  of  an  opera- 
tion in  order  to  discover  the  unnecessary  movements, 
and  those  which  are  absolutely  necessary  for  the  per- 
formance of  the  operation.  After  repeated  observation 
and  experimentation,  a  method  is  eventually  obtained 
which  requires  the  least  energy  and  time.  Thus  the 
only  way  to  determine  the  best  way  of  doing  an  opera- 
tion is  to  analyze  it  into  elementary  operations,  and 
determine  separately  the  best  way  of  doing  each  element. 
The  time  for  doing  an  operation  is  then  the  sum  of  the 
different  times  that  are  taken  for  the  performance  of  the 
different  elements.  This  is  not  an  easy  task,  and  de- 
mands a  trained  mind  and  accurate  observation. 

The  ascertaining  of  the  best  way  extends  beyond  the 
movements  of  performance,  as  it  demands  a  careful  in- 
Requisites  vestigation  iuto  all  conditions  relating  to  the 
for  standard  performance.  Those  conditions  which  are 
methods.  -j-^^g^  suited  to  the  performance  should  be  dis- 
covered, and  all  those  which  hinder  a  worker  should  be 
discarded.     Machines,  tools,  equipment,  and  materials 


METHODS  95 

demand  careful  study  and  should  be  such  as  assist  the 
worker  as  much  as  possible.  Working  conditions  and 
environment  should  be  made  the  most  conducive  to 
health,  and  to  the  efficient  performance  of  work.  Every 
condition  in  a  plant  should  be  made  as  favorable  as 
possible  for  the  performance  of  work. 

An  important  problem  is  finding  the  time  to  be  al- 
lowed in  the  performance  of  an  operation.  In  the 
time  allowed,  consideration  should  be  given  to  xj     .    ,^ 

.      '  in        How  to  de- 

nrst,  the  time  actually  spent  at  work,  secondly,  termine 

the  time  allowed  for  delays,  and  thirdly,  the  time  for  a 
time  allowed  to  overcome  fatigue.  The  time  *^^  ' 
actually  spent  is  the  sum  of  the  time  spent  upon  the 
elements  of  an  operation.  This  is  determined  by  the 
expert  investigating  the  operation,  and  extreme  care 
should  be  taken  in  observation  and  in  timing.  There 
is  usually  more  or  less  delay  in  the  performance  of  work, 
and  the  allowance  for  delay  should  be  made  only  after 
a  thorough  examination  of  a  plant.  As  conditions  vary 
in  different  plants,  so  will  allowances,  and  no  fixed  allow- 
ance for  delay  can  be  made  standard  for  all  plants. 

A  third  element  entering  into  time  allowance  is  rest. 
Operations  vary  in  their  intensity,  and  in  the  amount 
of  mental  and  physical  efforts  necessary  for  jjowtoas- 
their    performance.     The    object    sought    in  certain  time 
time  and  motion  studies  is  not  to  find  a  time  allowed  for 
for  the  performance  of  a  task  that  may  be 
used  to  drive  men,  but  to  find  the  time  and  the  methods 
of  best  performance  that  will  enable  men  to  continue 
their  work  from  day  to  day  without  exhausting  their 
strength,  or  impairing  their  health.     It  is  time,  as  well  as 
methods  and  conditions  of  work,  which  should 
be  considered  in  order  to  ascertain   the  pre-  ^^^qII^^^^ 
cautions  which  should  be    taken   to  prevent 
fatigue.       Every    operation    should    be    given    special 


96  ECONOMICS  OF  EFFICIENCY 

study  in  order  to  ascertain  the  amount  of  energy  and 
the  intensity,  attention,  and  concentration  of  thought 
necessary  for  its  performance.  This  varies  with  the 
character  of  the  operation.  Constant  appHcation  should 
not  be  allowed  to  the  point  of  fatigue,  so  rest  periods  are 
absolutely  necessary  with  many  kinds  of  work.  Their 
length  and  number  depend  upon  the  character  of  the 
operation.  If  necessary,  time  in  every  operation  should 
be  allowed  for  suitable  rests  so  as  to  prevent  fatigue. 
An  important  precaution  in  conserving  energy  is  making 
provision  wherever  possible  for  seats,  so  that  workers 
may  be  resting  as  much  of  the  time  as  does  not  in- 
terfere with  the  performance  of  their  tasks.  The  ascer- 
taining of  the  proper  time  for  an  operation  is  no  easy 
matter,  and  demands  scientific  investigation  into  every 
condition  affecting  the  operation,  and  careful  observa- 
tion and  measurement  in  order  to  ascertain  the  time  in 
which  the  operation  may  be  accomphshed  in  the  partic- 
ular plant,  and  continued  by  efficient  trained  workers 
from  day  to  day. 

Many  beheve  that  standard  means  perfection  and 
fixity.  This  is  false,  as  the  idea  of  perfection  is  not  in- 
c*««^„,^  volved  in  standard.  A  standard  method  is 
does  not  Simply  the  best  method  that  can  be  devised  at 
mean  per-      the  time  the  standard  is  set ;  and  in  determining 

it,  consideration  should  be  given  to  the  actual 
conditions  as  they  exist  in  a  plant,  and  allowance  be 
made  for  any  limitations  that  might  be  present.  It  is 
also  false  to  associate  with  standard,  fixity  and  the  pre- 
cluding of  change.  Improvements  in  standards  are 
When  to  Wanted,  as  progress  depends  among  other 
introduce  things  upon  them.  It  is  impossible  to  say 
changes  in  a  when  a  new  discovery  may  be  made,  or  a  new 

way  of  doing  things  be  found  which  demands 
a  change  in  the  old  way.     The  old  standard  should  be 


METHODS  97 

changed,  and  a  new  one  set  up.  Standards  should  not  be 
subject  to  frequent  changes  in  order  to  meet  whims  of  the 
management.  Experts  should  carefully  study  stand- 
ards, new  inventions  and  discoveries,  in  order  to  see  if 
any  better  way  may  be  devised  for  performing  any  opera- 
tion in  a  plant  under  actual  existing  conditions.  If  a 
better  way  is  discovered,  and  it  is  proven  so  by  careful 
scientific  investigation,  the  old  should  be  discarded  for 
the  new.  Changes  in  standard  should  be  made  only 
after  careful  investigation  by  a  competent  person  of 
new  ways  of  doing  work,  and  it  has  been  conclusively 
proven  that  the  new  is  better  than  the  old.  As  soon 
as  that  is  proven,  no  hesitation  should  exist  as  to  the 
desirabihty  of  the  change.  A  standard  is  simply  the 
best  method  known  at  the  time  of  its  adoption,  and  may 
not  be  the  best  method  the  following  week.  The  dis- 
covery of  the  best  method,  and  it  made  standard  is  a 
demand  of  efficiency,  but  another  demand  equally  im- 
portant is  to  see  that  the  standard  is  always  moving 
higher,  keeping  pace  with  new  discoveries  and  ideas  in 
the  performance  of  work.  Standard  methods  are  those 
scientifically  based  on  correct  knowledge  and  principles, 
and  representing  the  best  possible,  at  the  time^  in  the 
particular  business  enterprise,  and  which  are  reaHzable 
under  existing  conditions. 

Efficiency  demands  more  than  standard  methods.     In 
fact,  standard  methods  make  necessary  standardization 
in  many  forms.     Standard  machines,  standard  standard 
tools,  standard  conditions  of  work,  standard  methods 
environment,  and  standard  materials  are  all  imply  other 
necessary.     Each  should  be  the  best  possible 
for  accomplishing  a  desired  result  under  existing  con- 
ditions.    The  obtaining  of  standard  methods  of  work 
carries  scientific  investigation  into  every  part  of  a  busi- 
ness enterprise,  and  demands  actual  knowledge  of  every 


98  ECONOMICS  OF  EFFICIENCY 

detail  of  business  activity.  It  carries  science  into  every 
phase  of  business  life.  Standardization  is  an  absolute 
demand  of  efficiency,  and  is  one  of  the  greatest  factors 
working  for  industrial  growth  and  progress. 

Business  managements,  in  the  performance  of  work, 
leave  too  much  to  workers,  and  take  too  little  responsi- 
P  .       biHty  upon  themselves.     Workers  in  the  aver- 

biiity  upon  age  business  enterprise  have  no  knowledge  as 
manage-  to  what  is  the  best  way  to  perform  a  task, 
^^^  '  how  long  a  task  should  take,  how  much  a  man 

should  do  in  a  day,  or  what  are  the  best  environments 
for  the  performance  of  work,  and  yet  the  responsibility 
of  performance  is  largely  put  up  to  them.  They  are 
to  get  the  work  performed,  following  usually  their  own 
methods.  The  efficiency  movement  places  all  the 
responsibility  upon  the  management,  where  it  rightly 
belongs.  It  is  the  work  of  the  management  to  discover 
the  best  way  of  doing  work,  the  best  conditions  and 
environment  for  the  performance  of  work,  the  selection 
and  the  training  of  workers  in  the  best  way,  and  the 
workers  are  to  cooperate  in  following  instructions,  and 
in  putting  their  entire  interest  and  enthusiasm  into 
what  they  are  doing.  Responsibility  is  taken  in  a  large 
degree  from  the  workers  and  placed  upon  the  manage- 
ment, which  is  better  able  to  guide  workers  in  standards 
of  performance  of  work. 

The  discovery  of  best  methods  is  of  little  use,  unless 
provisions  are  made  for  their  adoption,  and  their  con- 
Adoption  stant  and  persistent  following.  The  qualifica- 
and  use  of  tions  needed  in  workers  for  each  operation 
standard  should  be  ascertained  by  careful  study  and  in- 
°^^*  °  ^*  vestigation,  and  workers  should  be  chosen 
who  are  especially  adapted  by  nature  and  by  training 
to  efficiently  perform  the  work.  Too  great  emphasis 
cannot  be  placed  upon  the  necessity  of  proper  selection 


METHODS  99 

of   workers.     The   Ideal   condition   would   be   to   have 
every  operation  in  a  business  enterprise  performed  by  a 
worker  adapted  and  fitted  by  nature  and   by  training 
to  do  the  work  most  efficiently.     This  should  be  the 
goal,  and  the  nearer  it  is  approached,  the  greater  is  the 
efficiency  obtained  from  the  working  force.     Selection 
by  itself  does  not  give  efficiency  without  proper  training. 
Workers  should  be  carefully  trained  in  stand- 
ard    methods     by     competent     instructors.  Adopted 
Where    work    demands    constant    repetition 
of  similar  movements,   the  training  should  be  careful 
until  habits  are  formed.     Strict  precautions  should  be 
taken  by  instructors  to  see  that  only  standard  move- 
ments are  repeated,  and  that  they  are  identically  re- 
peated.    In  other  words,  the  habits  formed  should  be 
the   correct   habits   of   performing   work   according   to 
standard  methods,  and  training  should  be  careful  and 
thorough  until  these  are  formed.     In  the  case 
of  job  work,  standard  methods,  conditions,  ma- 
chines, tools,  and  materials  should  be  worked  out  in 
advance  by   the  management.     Instructions  in   detail 
should  be  made  out  and  given  to  the  workers,  and  ex- 
treme care  taken  to  see  that  instructions  are  carefully 
and  closely  followed. 

Constant  and  careful  supervision  of  work  is  an  absolute 
necessity.  It  is  essential  to  maintain  a  high  quality  in 
goods  produced  and  in  services  rendered,  super- 
Supervision  is  also  necessary  in  making  cer-  vision;  its 
tain  that  only  standard  methods  are  followed.  i°iportance. 
Adequate  and  proper  supervision  of  every  kind  of  work 
is  absolutely  necessary. 

An  important  consideration  in  gaining  the  cooperation 
of  workers  in  following  standard  methods  is  that  of  re- 
muneration. The  cooperation  of  workers  is  absolutely 
necessary,  because  without  it   efficiency   in  any  form 


lOo  ECONOMICS  OF  EFFICIENCY 

cannot  be  obtained.  The  best  incentive  that  can  be 
given  to  any  worker  to  follow  methods  and  instructions 
How  to  gain  is  to  prove  to  him  that  he  is  a  gainer  there- 
cooperation  by.  If  a  worker  can  be  convinced  that  follow- 
of  workers.  ^^^  instructions  will  be  advantageous  to  him, 
the  most  difhcult  part  of  the  task  of  introducing  stand- 
ard methods  is  overcome.  The  incentive  which  appeals 
most  strongly  is  that  of  increased  remuneration.  The 
workers  should  be  shown  that  the  increased  output  which 
results  from  following  standard  methods  does  not  come 
from  increased  energy  on  the  part  of  the  workers,  but 
from  directing  into  productive  channels  the  energies 
which    before    were    misdirected    and    wasted.     They 

should  be  assured  that  increased  remuneration 
mune^ration    ^^l^^ws  from  increased  output,  and  that  the 

management  will  be  fair  and  just  in  remuner- 
ating labor,  and  in  all  its  deaHngs  with  its  working  force. 
The  assurance  of  just  remuneration  and  treatment  is 
necessary  to  obtain  the  cooperation  of  the  working  force, 
so  essential  in  the  successful  introduction  of  standard 
methods. 

Work  according  to  its  character  may  be  paid  for  by 
time  or  by  piece  rate.  Many  kinds  of  work  only  per- 
Methods  ^^^  remuneration  by  the  time  occupied.  The 
and  time  performance  of  such  work  should  be  scien- 
^°^^-  tifically  studied,  and  the  best  methods  ascer- 

tained for  performance.  With  many  kinds  of  work,  it  is 
possible  to  set  a  certain  task  to  be  performed  during  a 

day,  and  when  this  is  finished,  the  worker  is 

allowed  to  go.  This  method  is  successfully 
used  in  many  of  our  business  enterprises.  With  piece 
rate,  the  task  is  the  fundamental  basis.  The  task  is  the 
standard  amount  of  any  kind  of  work  that  a  man  should 
do  in  a  certain  period  of  time.  The  important  problem 
is  to  ascertain  the  best  method  for  the  performance  of  the 


METHODS  loi 

task,  and  what  time  should  be  allowed  for  it.  Finding 
the  proper  time  is  an  important  question  in  piece  rate. 
The  task  should  be  capable  of  being  performed  by  care- 
fully trained  men  in  the  time  set,  and  under  existing 
conditions  in  the  local  plant. 

The  discovery  of  the  best  way  of  performing  work  is 
the  duty  of  the  planning  department.  Planning  is  an 
important  work  in  any  business  enterprise.  In  planning 
a  small  enterprise,  the  work  may  be  performed  department ; 
by  the  employer  himself,  or  it  may  be  assigned  ^*^  ^°^^- 
to  a  special  employee,  but  in  a  large  enterprise,  it  is  the 
work  of  a  special  department.  Planning  is  absolutely 
necessary  in  every  establishment,  large  or  small,  as  it  is 
a  necessity  wherever  any  kind  of  work  is  performed. 
The  planning  department  decides  what  is  to  be  done, 
the  method  by  which  it  is  to  be  done,  the  men  who  are 
to  do  it,  the  tools  and  materials  which  should  be  used, 
the  time  it  should  take,  the  quahty  of  the  work,  and  the 
pay.  It  selects  and  trains  men  in  the  best  methods,  and 
secures  machines,  tools,  materials,  and  conditions,  the 
best  possible  for  performing  the  work  in  the  standard 
time  allowed.  With  job  work,  the  planning  tq^,^qj.j^ 
department  predetermines  the  methods, 
tools,  machines,  and  materials  used,  the  men  who  are 
to  do  the  work,  route  of  work  through  the  plant,  the 
time  necessary  for  performance,  and  the  pay.  The 
work  is  thus  carefully  planned  before  it  goes  to  the  men, 
and  instructions  are  carefully  made  out  as  to  methods, 
men  who  are  to  do  the  work,  route,  machines,  tools, 
materials  used,  and  the  time  allowed.  The  instructions 
are  given  to  workers,  and  they  should  carefully  follow 
them.  It  is  the  duty  of  the  planning  department  to 
see  there  is  no  delay  or  waiting  on  the  part  of  the  men 
for  machines,  tools,  or  materials.  Planning  should  be 
placed  with  experts,  where  it  belongs. 


I02  ECONOMICS  OF  EFFICIENCY 

Formerly,  and  even  to-day,  little  or  no  planning  is 
done  by  the  management.  A  job  is  given  to  the  workers, 
p.      .  and  it  remains  with  them  to  find  a  way  of  do- 

negiected  ing  the  work.  The  workers  choose  machines, 
in  many  tools,  and  materials,  and  no  one  knows  how 
p  an  s.  much  time  it  should  take.     It  is  put  up  to  the 

worker  to  devise  his  own  methods,  and  to  choose  his  own 
tools,  materials,  etc.  The  course  of  all  work  should  be 
predetermined  by  experts  before  it  is  done,  and  if  this 
were  done,  a  vast  amount  of  wasted  energy  would  be 
turned  into  productive  results.  Employers  would  gain 
by  increased  profits,  and  employees  by  better  working 
conditions,  protection  of  health,  and  higher  wages.  The 
planning  department  has  complete  charge  of  standard- 
ization and  raising  standards.  Experts  are  usually 
employed  to  carefully  study  local  conditions  and  im- 
provements in  methods,  machines,  and  tools,  in  order 
to  ascertain  if  a  better  way  can  be  discovered  for  the 
performance  of  any  one  of  the  various  kinds  of  work 
being  done,  and  if  a  better  way  is  discovered,  to  change 
the  standard  from  the  old  to  the  new. 

Efiiciency  demands  that  all  work,  it  matters  not  its 
character,  should  be  performed  in  the  way  that  gives 
Efficiency  the  best  results  with  the  least  expenditure  of 
and  the  best  energy,  materials,  and  time.  The  discovery 
^^y-  of  the  best  way,  and  making  it  standard  for 

every  kind  of  work,  is  as  important  to  the  small  estab- 
hshment  as  to  the  million-dollar  corporation.  The 
sooner  business  men  realize  that  there  is  one  best  way 
of  doing  work,  and  that  it  means  greater 
bes^t  wa^y  efficiency,  lower  costs,  and  higher  profits,  the 
based  on  greater  will  be  their  chance  of  success  in  profit- 
accurate        making.     They   should  also  realize  that  the 

knowledge.      ,.11  ■, 

best  way  is  not  based  upon  guess,  but  upon 
careful  knowledge,  acquired  by  scientific  investigation. 


METHODS  103 

Business  men  should  bear  in  mind  that  knowledge 
is  the  foundation  of  future  business  expansion  and 
growth.  Efficiency,  the  goal  towards  which  every 
business  man  should  be  working,  makes  the  performance 
of  work  according  to  predetermined  standard  methods 
an  absolute  necessity.  Our  future  industrial  growth 
and  expansion  depend  largely  upon  making  our  business 
enterprises  more  efficient,  and  this  has  its  basic  founda- 
tion upon  efficient  methods  in  the  performance  of  work. 

QUESTIONS 

1.  Account  for  the  changed  attitude  of  business  men  towards 
performance  of  work. 

2.  Compare  the  old  methods  of  performance  of  work  with  the 
new. 

3.  What  are  the  methods  for  ascertaining  the  best  conditions 
for  work  ? 

4.  Show  that  theoretical  principles  underhe  business  activities. 

5.  What  is  the  importance  of  time  studies  ?     How  should  time 
study  be  conducted? 

6.  What  is  a  motion  study  ?     Show  its  importance  to  the  busi- 
ness m.an, 

7.  Mention  the  requisites  necessary  for  ascertaining  standard 
methods. 

8.  What  precautions  should  be  taken  in  ascertaining  the  time 
for  a  task  ? 

9.  When  should  rest  periods  be  allowed  ?    How  do  you  ascer- 
tain the  time  to  allow  ? 

10.  Show  that  standards  do  not  preclude  change.     What  pre- 
cautions should  be  taken  in  introducing  changes  in  standards  ? 

11.  Show  that  efficiency  methods  transfer  responsibility  from 
the  workers  to  the  management. 

12.  Why  should  plant  conditions  be  carefully  studied  in  fixing 
time  for  task? 

13.  What  are  the  means  for  gaining  the  cooperation  of  workers  in 
efficiency  methods  ? 

14.  What  are  the  functions  of  the  planning  department  ?     Esti- 
mate its  importance  in  a  business  enterprise. 

15.  How  do  employees  gain  by  the  adoption  of  efficiency  methods 
of  performance  of  work  ? 


104  ECONOMICS  OF  EFFICIENCY 

REFERENCES 
Books 

L.  D.  Brandeis,  "Scientific  Management  and  Railroads,"  Chs. 
VII,  VIII;  C.  U.  Carpenter,  "Profit  Making  in  Shop  and  Factory 
Management,"  Chs.  VIII,  IX,  X;  Clark  and  Wyatt,  "Making 
Both  Ends  Meet,"  Ch.  VIII;  H.  A.  Evans,  "Cost  Keeping  and 
Scientific  Management,"  Ch.  X ;  F.  B.  Gilbreth,  "Motion  Study"  ; 
F.  B.  Gilbreth,  "Primer  of  Scientific  Management";  L.  M.  Gil- 
breth, "The  Psychology  of  Management,"  Chs.  IV-VII;  E.  D. 
Jones,  "Business  Administration";  D.  S.  Kimball,  "Principles 
of  Industrial  Organization,"  Ch,  VIII ;  The  Library  of  Business 
Practice,  Vol.  II,  pp.  132-140 ;  F.  A.  Parkhurst,  "  AppHed  Methods 
of  Scientific  Management,"  Chs.  Ill- VII;  W.  C.  Redfield,  "The 
New  Industrial  Day,"  Ch.  II;  The  System  Co.,  "How  Scientific 
Management  is  AppHed,"  Chs.  II- VII ;  F.  W.  Taylor,  "The  Prin- 
ciples of  Scientific  Management";  F.  W.  Taylor,  "Shop  Man- 
agement," 

Articles 

N.  E.  Adamson,  "Production  Betterment  by  Time  Studies," 
Iron  Age,  Vol.  89,  pp.  835-838 ;  J.  A.  Anglada,  "  Standardization," 
Southern  Machinery,  Vol.  31,  pp.  119-120;  W.  S.  Ball,  "Taking 
a  Motion  Apart,"  Factory,  Vol.  10,  pp.  131-132  +  ;  A.  H.  Church, 
"What  to  Plan  and  When,"  Engineering  Magazine,  Vol.  45, 
pp.  405-411 ;  H.  L.  Gantt,  "The  Basis  of  Proper  Management," 
American  Machinist,  Vol.  35,  pp.  841-842;  H.  L.  Gantt,  "The 
Straight  Line  to  Profit,"  System,  Vol.  19,  pp.  115-124;  L.  M. 
Gilbreth,  "Measurement,"  Industrial  Engineering,  Vol.  12, 
pp.  116-120;  L.  M.  Gilbreth,  "Analysis  and  Synthesis,"  Industrial 
Engineering,  Vol.  12,  pp.  155-158;  L.  M.  Gilbreth,  "Standard- 
ization," Industrial  Engineering,  Vol.  12,  pp.  199-204;  L.  M.  Gil- 
breth, "Records  and  Programs,"  Industrial  Engineering,  Vol.  12, 
pp.  248-253;  F.  B.  Gilbreth,  "Units,  Methods,  and  Devices  of 
Measurement  under  Scientific  Management,"  Journal  of  PoHtical 
Economy,  Vol.  21,  pp.  618-629;  H.  K.  Hathaway,  "Elementary 
Time  Study,"  Industrial  Engineering,  Vol.  11,  pp.  85-96;  H.  K. 
Hathaway,  "The  Planning  Department,  its  Organization,"  Indus- 
trial Engineering,  Vol.  12,  pp.  7-11;  F.  B.  Jacobson,  "A  Time 
Study  Piece  Work  System,"  American  Machinist,  Vol.  34,  pp.  631- 
632;  H.  P.  Kendall,  "Systematized  and  Scientific  Management," 


METHODS  105 

Journal  of  Political  Economy,  Vol.  21,  pp.  592-617  ;  C.  E.  Knoep- 
pel,  "How  to  Make  a  Time  Study/'  Industrial  Engineering, 
Vol.  12,  pp.  501-505  ;  C.  E.  Knoeppel,  "The  Practical  Introduction 
of  Efficiency  Principles,"  Engineering  Magazine,  Vol.  47,  pp.  65- 
75;  C.  E.  Knoeppel,  "How  to  Make  a  Time  Study,"  Southern 
Machinery,  Vol.  30,  pp.  58-60;  C.  E.  Knoeppel,  "Making  More 
than  One  Study  at  a  Time,"  Southern  Machinery,  Vol.  31,  pp.  129- 
131;  C.  E.  Knoeppel,  "Determining  a  Fair  Standard,"  Greater 
Efficiency,  Vol.  3,  pp.  25-43;  F.  A.  Parkhurst,  "Time  Studies 
and  Their  Introduction,"  Industrial  Engineering,  Vol.  10,  pp.  249- 
262;  F.  A.  Parkhurst,  "The  Standardization  of  Methods  and 
Tools,"  Industrial  Engineering,  Vol.  10,  pp.  161-176;  G.  H. 
Shepard,  "An  Analysis  of  Practical  Time- Motion  Studies," 
Engineering  Magazine,  Vol.  43,  pp.  538-546;  W.  H.  Spire,  "Some 
Advantages  of  Standardization,"  Southern  Machinery,  Vol.  31, 
pp.  86-87;  S.  E.  Thompson,  "Time  Study  and  Task  Work," 
Journal  of  Political  Economy,  Vol.  21,  pp.  377-387  ;  E.  M.  WooUey, 
"FindingtheOneBest  Way,"  System,  Vol.  19,  pp.  227-238;  E.M. 
WooUey,  "Putting  the  'One  Best  Way'  into  Practice,"  System, 
Vol.  19,  pp.  356-366;  E.  M.  WooUey,  "Scientific  Management  in 
the  Office,"  System,  Vol.  20,  pp.  3-14. 


CHAPTER  VI 
Hiring  of  Labor 

A  SUCCESSFUL  business  man  once  remarked  that  his 
success  was  due  chiefly  to  the  men  whom  he  gathered 
Machines,  around  him.  Human  ability  is  a  great  busi- 
labor,  and  ness  asset.  To-day,  more  than  ever  before, 
efficiency.  ^^le  human  element  is  the  greatest  factor  in 
business  operations.  The  best  equipped  plant  cannot 
make  a  success  unless  properly  skilled  and  trained  men 
are  in  attendance.  Again,  skilled  and  trained  labor  can- 
not overcome  the  handicap  of  poor  machines  and  equip- 
ment. The  greatest  efhciency  is  obtained  by  having  the 
Importance  ^est  possible  machines  and  equipment,  with 
of  sknied  skilled  and  trained  laborers  properly  organized 
workers.  ^^^  working  together  for  the  success  of  the 
business  enterprise.  Efflciency  places  particular  stress 
and  emphasis  upon  the  working  force,  the  human  brains 
and  the  human  hands  which  form  the  most  important 
factor  in  any  business  undertaking.  In  obtaining  effl- 
ciency  in  a  working  force,  the  most  difficult  problem  is  the 
obtaining  of  men  to  perform  the  different  tasks. 

The  hiring  of  labor  is  an  important  work  in  every  busi- 
ness undertaking,  but  it  is  given  Httle  attention  and 

study.  It  is  recognized  as  true  that  the  men 
ofiabo""a  whom  an  employer  employs  are  the  direct 
problem  causc  of  his  succcss  or  failure,  yet  it  is  only 
^°°1   t  d       recently  that  it  is  commencing  to  dawn  upon 

the  employer  that  a  large  share  of  the  success 
of  a  working  force  comes  from  hiring  the  right  kind  of 
men  for  the  several  places  in  a  business  enterprise.     The 

io6 


HIRING  OF  LABOR  107 

hiring  of  men  is  a  difficult  problem  confronting  a  business 
man,  yet  how  many  employers  pay  any  heed  or  attention 
to  it  ?  The  hiring  of  an  employee,  skilled  or  unskilled, 
is  as  important  a  matter  as  the  buying  of  a  machine,  or 
the  buying  of  goods.  Careful  examinations  and  tests 
are  made  by  experts  of  every  machine  before  -g^  .^^  ^ 
it  is  purchased.  SpeciaHsts  are  employed  for  machines  ys. 
the  buying  of  materials  and  commodities,  men  buying  of 
who  devote  their  entire  time  to  the  study  of  ^  °^' 
the  goods,  markets,  etc.,  and  these  are  often  assisted  by 
a  staff  of  chemists  and  experts.  Special  care  is  taken  in 
buying  machines,  tools,  and  materials,  but  little  attention 
is  paid  to  the  buying  of  labor,  upon  whom  depends  the 
getting  of  the  greatest  quantity  of  output  of  the  highest 
quahty,  and  with  the  least  waste  from  machines,  equip- 
ment and  materials. 

The  buying  of  labor  is  left  usually  to  people  whose 
special  work  is  something  else,  with  a  result  that  it  is 
done  usually  in  a  way  which  is  costly  to  buyer,  ^^  uisites 
and  unsatisfactory  to  seller.  The  buyer  takes  for  an  ef- 
little  interest  in  what  he  is  purchasing  and  few  ficient  labor 
precautions  to  ascertain  what  he  is  getting.  °^^®' 
An  efficient  labor  force  can  be  obtained  and  maintained 
when  the  following  requisites  are  fulfilled ;  first,  a  care- 
ful study  of  each  task,  its  demands  ascertained,  and 
workers  selected,  who  are  especially  fitted  for  the  work 
to  be  performed ;  secondly,  extreme  care  in  the  selection 
of  workers,  so  as  to  obtain  those  that  will  be  satisfactory, 
without  the  expense  of  the  old  system  of  experimenting 
or  trial;  thirdly,  the  best  possible  method  of  work  for 
the  different  tasks,  and  the  training  of  workers  in  the 
methods  adopted ;  fourthly,  the  equipping  of  a  plant  with 
the  best  possible  machines,  tools,  and  materials,  the 
keeping  of  machines  and  tools  in  the  best  repair,  and 
proper  planning,  so  that  there  is  no  waiting  on  the  part 


io8  ECONOMICS  OF  EFFICIENCY 

of  the  workers;  fifthly,  a  fair  reward  to  each  man  for 
his  labor;  lastly,  working  conditions  which  are  most 
conducive  to  health  and  to  work. 

A  chief  requisite  in  the  obtaining  of  an  efficient  labor 
force  is  the  proper  selection  of  workers  for  the  different 
tasks  to  be  performed.  Employers  are  usually 
are  studied  careful  in  purchasing  machines  and  materials, 
before  pur-  but  when  it  comes  to  hiring  labor,  they  wait 
chase,  but      ^j^^-j  ^  ^^^  |g  needed,  and  take  the  first  one 

not  men.  \  i         -r 

who  comes  along.  It  is  true  that  if  a  person 
uses  care,  he  can  accurately  determine  the  constituents 
of  materials,  and  the  work  and  the  speed  of  machines. 
It  is  a  fact  that  the  capabiHties  and  the  efficiency  of 
workers  can  at  most  only  be  estimated.  Is  it  not  true, 
that  there  are  certain  external  features  and  characteris- 
tics, which  portray  physical  and  mental  strength  or  weak- 
ness. By  a  careful  examination  of  applicants,  and  by 
information  obtained  from  previous  employers,  a  person 
skilled  in  reading  human  nature,  and  knowing  the  re- 
quirements of  a  place  to  be  filled,  can  decide  on  the  appli- 
cant who  is  best  suited  to  fill  a  vacancy. 

The  uncertainty  of  a  newcomer  in  a  business  enter- 
prise is  one  of  the  most  baffling  questions  confronting  our 
The  uncer-  business  men.  If  it  were  possible  for  an  em- 
tainty  of  a  ployer  of  labor  to  order  new  workers  accord- 
new  worker,  -^^g  ^^  exact  specifications,  as  he  does  his  ma- 
chines and  materials,  one  of  the  most  important  problems 
in  our  efforts  to  increase  the  efficiency  of  our  industrial 
and  business  operations  would  be  solved.  Dr.  Katherine 
Blackford  claims  that  she  has  reduced  the  hiring  of  labor 
to  a  science,  and  that  an  appKcant  may  be  studied  and 
his  special  fitness  determined  for  a  particular  vacancy. 
Whether  she  has  reduced  this  important  work  to  a  science 
may  be  questioned,  but  it  must  be  admitted  that  her 
investigations  have  done  a  great  deal  to  solve  the  ques- 


HIRING  OF  LABOR  109 

tion  of  the  uncertainty  of  a  new  worker.  Nevertheless, 
it  is  true  that  there  are  certain  suggestions,  which  if  fol- 
lowed by  employers,  will  greatly  assist  in  increasing  the 
efhciency  of  a  working  force,  and  in  reducing  much  of 
the  expense  incurred  by  the  old  haphazard  method  of 
hiring  men. 

Machines  are  tested  for  efficiency  before  purchase, 
and  materials  for  quahty,  but  the  usual  practice  is  to 
take  workers  at  a  rough  guess.     They  are  common 
usually  hired  upon  general  recommendations,  practice  in 
and   taken  on   trial.     Those  who,   on  being  hi^ngmen. 
given  a  trial,  are  not  satisfactory,  are  dismissed,  and 
other  trials  are  made  until  the  required  number  is  ob- 
tained.    The  old  method  of  selecting  men  is  a  mere 
process  of  guesswork.     No  attempt  is  made  to  study  the 
individual.     Hiring  is  usually  left  to  the  superintendent, 
who,  when  he  wishes  workers,  inserts  an  advertisement  in 
the  city  paper,  and  spends  perhaps  thirty  minutes  the 
following  morning  to  pick  out  the  ten  or  fifteen  men  that 
he  needs.     He  trusts  to  his  snap  judgment  to  size  up  the 
men  at  a  glance.     Frequently  the  first  ten  are  taken,  and 
a  sign  is  placed  outside,  ''No  men  wanted." 
Out  of  the  ten  men  hired,  the  superintendent  base?on 
considers  himself  fortunate  if  he  secures  seven  guess  and 
good  men.     After  a  trial,  the  three  unsatis-  snap  judg- 

r  T        •         1  11  ment. 

factory  ones  are  dismissed,  and  three  more 
tried.  Of  these,  one  may  prove  unsatisfactory,  he  is 
dismissed,  and  another  one  is  tried.  The  process  con- 
tinues until  ten  satisfactory  men  are  secured.  This  hire 
and  fire  process  is  wasteful  and  expensive,  yet  it  is  the  one 
in  common  use  to-day.  The  manager  of  a  large  business 
enterprise  estimates  that  it  costs  him  two  hundred  dollars 
for  every  twenty-dollar-a-week  man  hired  and  broken  in. 
Another  declares  that  for  every  dollar  paid  a  new  em- 
ployee for  the  first  few  weeks,  he  is  out  two  dollars  for 


no  ECONOMICS  OF  EFFICIENCY 

breaking  in,  and  still  another  states  that  the  breaking 
in  of  a  new  employee  to  a  position  of  any  importance 
costs  two  months  of  his  time  before  he  is  seasoned. 

One  of  the  basic  principles  underlying  efficiency  is 
continuity  in  service.  Nothing  so  works  against  effi- 
Experi-  cicncy  as  continual  change  in  a  working  force, 

menting  Men  when  they  know  that  they  are  likely  to 
with  men  is  ^g  discharged  at  any  minute  do  not  take  an 
*^°^*  ^'  interest  in  their  work,  and  do  not  give  their 

best  service.  Experimenting  with  men  is  costly, 
and  the  less  an  employer  is  compelled  to  experi- 
ment, the  greater  are  his  chances  of  success.  One  raw 
recruit  among  a  number  of  trained  men  is  a  disorgan- 
izing element,  and  adds  to  expenses  by  causing  a  les- 
sened efficiency  of  the  whole  body  of  men  with  whom 
he  works.  Experimenting  is  one  of  the  direct  effects  of 
the  old  and  prevailing  hire  and  fire  method.  In  an  enter- 
prise employing  a  large  number  of  men,  and  where  the 
hire  and  fire  method  is  in  operation,  the  annual  loss  from 
experimenting  amounts  to  a  considerable  sum  of  money. 
Here  is  a  waste  that  should  be  eliminated,  and  the  only 
way  to  do  this  is  to  be  systematic  and  careful  in  the 
selection  of  workers. 

Employers  have  recently  recognized  the  great  im- 
portance of  holding  men  in  their  organization.  In  a 
laboring  force,  continuity  of  service  is  the 
men  in^an  ideal,  and  employers  should  bear  in  mind  that 
organiza-  permanence  and  efficiency  go  hand  in  hand. 
*^ortance  '^^^  necessity  of  discharging  men  would  be 
obviated  by  having  proper  systems  of  hiring 
and  of  handling  them.  High  efficiency  cannot  be  main- 
tained unless  a  high  degree  of  permanency  exists  in  a 
working  force.  In  how  many  establishments  do  we  find 
men  taken  on,  and  laid  off,  without  thought  or  considera- 
tion for  their  welfare.     Men  frequently  work  with  the 


HIRING  OF  LABOR  iii 

sword  of  Damocles  hanging  over  their  heads  in  expect- 
ing discharge  every  pay  day.     When  such  a  method  is 
in  operation,  how  can  an  employer  expect  his  ^^^^  ^^ 
men  to  work  with  any  interest  ?     How  can  he  constant 
expect  them  to  cooperate  with  the  manage-  hiring  and 
ment  for  the  success  of  the  enterprise  ?     How      ^^^" 
can  he  expect  loyalty,  interest,  and  enthusiasm  ?     Per- 
manency in  service  is  one  of  the  handmaids  of  efficiency, 
and  has  its  basic  foundation  in  a  proper  system  of  re- 
cruiting properly  equipped,  quahfied,  and  trained  men  for 
the  working  force.     The  hiring  of  men  is  closely  related 
to  permanency  and  enthusiasm,  which  are  so  essential  for 
increasing  efficiency. 

There  are  so  many  incompetent  men  in  the  industrial 
field  that  it  is  absolutely  necessary  to  exercise  great  care 
in  hiring,  so  as  to  avoid  failures,  misfits,  and  ,,«.  . 

,        T  -r  IT  .        •  EflBciency 

dereucts.     Loss  and  disorganization  are  occa-  and  hiring 
sioned  by  hiring  a  man,  and  later  finding  him  t^e  right 
a  failure.     Every  working  force,  if  it  is  to  be  ^^^' 
efficient,  should  have  its  members  carefully  selected,  and 
it  is  the  wise  selection  of  workers  which  is  one  of  the  marks 
of  good  management.     Upon  hiring  the  right  workmen 
more  than  upon  anything  else  depends  the  efficiency  of 
a  working  force.     Human  ability  is  one  of  the  most  im- 
portant things  that  a  business  man  buys,  and  to  its 
selection  more  careful  attention  should  be  given.     When 
the  importance  of  labor  in  every  branch  of  business  is 
considered,  it  is  strange  that  employers  do  not  give  more 
care  to  the  work  of  selecting  proper  men. 

A  basic  requisite  in  selection  is  to  know  the  place  to  be 
filled.     Every  place  in  a  business  enterprise  ^j^^  ^^^^ 
makes  many  demands  upon  its  occupant,  so  of  the  re- 
that  it  may  be  filled  with  the  greatest  possible  quirements 
efficiency.     The  demands  should  be  known  °  p^*^®^. 
and  heeded  in  filling  vacancies.     A  place  demands  certain 


112  ECONOMICS  OF  EFFICIENCY 

qualifications  in  a  man.  The  first  great  problem  is,  there- 
fore, to  know  the  requirements  of  a  place,  and  the 
second  is  to  have  the  ability  to  pick  out  a  man  with  the 
required  qualifications.  It  stands  to  reason  that  it  is 
only  by  luck  that  a  superintendent  by  snap  judgment, 
and  without  study  of  a  place  to  be  filled,  can  decide  by 
glancing  at  a  man  that  he  possesses  all  the  qualifications 
necessary  to  meet  the  requirements  of  the  place.  The 
average  superintendent  knows  little  about  the  require- 
ments of  a  place,  and  pays  little  attention  as  to  whether 
or  not  an  applicant  possesses  the  necessary  qualifications. 
If  an  applicant  has  a  good  appearance,  a  good  letter  from 
a  previous  employer,  and  knows  the  trade  or  the  work 
to  be  performed,  he  is  usually  told  that  he  will  be  given 
a  trial.  Guesswork  and  chance  govern  selection.  Su- 
perintendents who  in  the  average  business  enterprise  hire 
and  dismiss  workers  have  their  time  so  taken  up  with 
the  routine  of  their  work  that  they  have  no  time  for 
studying  the  requirements  of  the  different  places  under 
them,  and  little  time  to  study  the  qualifications  of 
applicants. 

The  superintendent  is  not  the  man  to  hire  men.     The 
hiring  of  all  employees  should  be  placed  in  charge  of  an 

expert,  a  person  competent  to  make  a  thorough 
offici"^and  ^tudy  of  every  place  in  a  plant,  and  able  to 
not  the  decide  what  are  its  requirements.     This  is  the 

superintend-  f^j-gt  essential.  The  second  is  that  he  should  be 
hke  men.^      ^^  expert  in  the  reading  of  human  nature,  and 

able  by  interview  and  from  other  sources,  to  tell 
the  qualifications  of  men,  and  to  pick  out  the  one  possessing 
the  quahfications  necessary  to  fill  a  place  with  the  greatest 
efficiency.  In  the  selection  of  workers,  the  two  funda- 
mentals are  to  know  the  requirements  of  a  place  to  be 
filled,  and  to  be  able  to  pick  the  man  best  fitted  to  fill  it. 
Formerly,  and  even  to-day,  many  business  men  believe 


HIRING  OF  LABOR  113 

that  it  is  impossible  to  tell  before  a  man  takes  a  place, 
if  he  is  fitted  for  it,  and  will  prove  successful.  During 
the  last  few  years,  considerable  progress  has  been  made 
in  methods  for  the  ascertaining  of  the  requirements  of  a 
place,  and  for  the  selection  of  a  worker  with  the  proper 
quaHfications  to  efhciently  fill  it.  The  problem  is  to  de- 
vise some  method  of  reading  a  man's  quaHfications  for 
a  place  without  going  through  the  expensive  trial  stage. 
The  development  of  a  simple  and  practical  system  of 
hiring  labor  will  be  one  of  the  achievements  of  the  next 
few  years,  and  will  prove  a  great  boon  to  all  forms  of 
business  activity  and  a  great  factor  in  increasing  the 
efficiency  of  a  laboring  force. 

Unless  men  are  chosen  suitable  for  the  places  they  are 
to  fill,  disastrous  results  frequently  follow.  Hiring  by 
guess  means  the  entrance  into  a  working  force  Misfits  in  a 
of  misfits.  A  misfit  is  one  engaged  in  work  laboring 
for  which  he  is  not  by  nature  or  by  training  ^°^^^- 
fitted.  Misfits  easily  gain  entrance  into  a  working  force 
under  the  old  system  of  hiring,  while  it  would  be  difficult 
for  one  to  gain  entrance  under  a  competent  employment 
system.  A  misfit  causes  loss  through  inefiiciency  of  work, 
through  liabiHty  of  breakages  of  machines  if  „  j, 
attending  them,  through  spoiling  materials, 
and  through  the  lowering  of  the  efficiency  of  the  workers 
with  whom  he  works.  A  misfit  is  usually  not  interested 
in  his  work,  or  the  success  of  the  enterprise.  His  presence 
works  against  enthusiasm  and  loyalty,  and  prevents 
harmony  and  cooperation.  Every  business  man  should 
strive  to  eHminate  misfits  by  being  cautious  in  hiring 
labor.  The  saving  from  the  elimination  of  misfits  will 
in  a  large  plant  many  times  cover  the  expense  of  main- 
taining a  competent  employment  system.  An  ideal 
working  force  is  one  having  all  places  filled  by  men  fitted 
by  nature  and  by  training  for  their  tasks,  and  working 


114  ECONOMICS  OF  EFFICIENCY 

with  the  greatest  efficiency  and  cooperation  for  the  success 
of  the  enterprise. 

To  get  the  greatest  efficiency  from  a  laboring  force, 
every  worker  should  be  not  only  fitted  by  nature  for  his 
Requisites  tsisk,  but  should  be  trained  in  the  best  method 
in  labor  for  its  performance.  Every  place  demands  a 
efficiency,  worker  fitted  by  quahties,  aptitude,  and  train- 
ing for  it.  The  aim  of  a  business  man  should  be  to  have 
every  place  in  his  plant  filled  by  a  man  suited  by  nature 
and  by  training  for  performing  his  particular  task  in  the 
most  efficient  manner.  The  men  in  a  plant  should  be 
carefully  studied,  as  well  as  those  who  are  hired.  It 
should  be  ascertained  if  they  are  suited  by  nature  and  by 
Are  men  training  for  their  tasks.  If  lacking  in  train- 
fitted  by  ing,  that  may  be  easily  remedied,  but  if  not 
nature  for  fitted  by  nature  or  aptitude,  that  is  a  more 
t  eurwor  .  ggj-j^^g  problem.  A  change  of  place  may 
change  a  failure  into  a  success,  or  may  materially  increase 
the  efficiency  of  a  worker.  Efficiency  may  often  be  in- 
creased by  a  Httle  training,  or  by  transferring  a  worker 
.  to  work  for  which  he  is  adapted.     The  prob- 

raimng.  ^^^  ^^  having  men  engaged  in  tasks  for  which 
they  are  best  adapted  and  trained  is  an  important  one 
in  every  business  enterprise,  and  is  one  which  is  sorely 
neglected  by  business  men.  The  task  of  studying  the 
men  employed,  and  of  ascertaining  whether  or  not  they 
are  especially  adapted  for  their  work  should  be  made  a 
function  of  the  employment  expert.  He  is  the  man 
best  suited  to  make  such  a  study,  and  he  should  be  the 
one  given  charge  of  this  most  important  work. 

The  employment  expert  should  have  on  file  in  his 

office  the  requirements  of  every  place  in  a 

^^JlJ^  ^  ^  business  enterprise.     The  office  should  be  open 

vacancy.  i  •         j        r       ^i_  •    •  r  t 

every  workmg  day  for  the  receivmg  of  appli- 
cations.    Every  appHcant  should  be  carefully  examined, 


HIRING  OF  LABOR  115 

and  if  found  satisfactory,  his  name  with  quahfications 
should  be  carefully  indexed  and  filed.  The  expert  should 
make  note  of  the  place  which  the  applicant  is  best  fitted 
to  fill.  If  there  is  no  vacancy,  his  name  should  be  put 
on  file  for  one  which  he  can  fill.  When  a  vacancy  occurs, 
the  superintendent  sends  word  to  the  employment  office 
that  such  a  place  is  vacant.  The  expert  goes  to  his  file 
and  sees  if  he  has  passed  satisfactorily  upon  any  appli- 
cant; if  so,  word  is  sent  to  him  that  a  vacancy  has 
occurred,  but  before  he  is  finally  accepted,  it  is  advisable 
to  have  him  undergo  a  thorough  medical  examination  to 
see  if  there  is  any  physical  weakness  which  might  in  the 
future  develop,  and  unfit  him  for  efficient  work.  If  no 
names  are  on  file,  it  may  be  necessary  to  advertise.  It  is 
poor  policy  to  receive  applicants  only  when  a  vacancy 
occurs. 

The  employment  department  is  one  of  the  most  im- 
portant departments  of  every  large  business.     Its  suc- 
cess in  selecting  and  adjusting  men  to  their  Emniov- 
work  is  very  important.     In  a  small  business,  ment  de- 
employing  only  a  few  men,  it  is  too  expensive  partment; 
to  maintain  an  expert,  but  the  employer  himself  *  ^  ^°^ 
or  one  of  his  ablest  men  should  devote  time  and  study  to 
places  and  men  in  the  enterprise,  to  find  out  if  the  men  are 
qualified,  adapted,  and  trained  for  their  work,  and  to  be 
able  to  fill  vacancies  with  workers,  who  will  efficiently 
perform  the  required  work.     The  employment  expert  is 
an  important  factor  in  every  business,  and  his  impor- 
tance  is   rapidly  becoming   recognized.     Extreme  care 
should  be  taken  in  his  selection,  as  a  properly  qualified 
employment  expert  is  as  essential  as  a  properly  quaHfied 
superintendent.     His  success  in  studying  places  and  men, 
and  adjusting  men  to  places,  is  an  important  requisite 
for  efficiency. 

Andrew  Carnegie  frequently  refers  to  what  he  has 


ii6  ECONOMICS  OF  EFFICIENCY 

gained  by  being  able  to  read  human  character,  and  to 
pick  right  men  for  right  places.  His  power  to  read 
Requisites  human  nature,  and  tell  from  an  interview 
for  selection  whether  a  man  is  physically  and  mentally 
of  workers,  adapted  for  a  place  is  phenomenal.  During 
his  business  career  he  rarely  made  a  mistake  in  his  choice 
of  men,  and  his  success  in  surrounding  himself  with  an 
enthusiastic  and  loyal  working  force  is  largely  due  to  this. 
This  power  of  selection  is  intuitive,  and  belongs  to  the 
subconscious  mind  rather  than  to  reason.  It  is  by  in- 
tuition rather  than  by  sound  judgment  that  selection  is 
made.  Few  men  have  this  gift,  and  the  average  em- 
ployer relies  on  judgment  in  sizing  up  men  in  an  inter- 
view, and  deciding  whether  or  not  health,  character,  and 
capabiKties  are  adapted  to  places  to  be  filled. 

There  are  certain  fundamental  qualifications,  the  total 
lack  of  which,  or  the  serious  lack  of  one,  makes  an  appli- 
Funda-  cant  unsuitable  for  any  position.     These  are 

mental  health,  intelligence,  character,  and  industry, 

tions^for'  Health  is  an  absolute  essential  for  every  kind 
efficient  of  work,  and  a  sound  body  should  be  the  first 
work.  demand  of  every  applicant.     A  worker  should 

not  be  hired  who  has  a  weakness,  which  if  it  does  not  at 
present  impair  his  health,  will  in  the  future.  If  a  weak- 
ness is  only  temporary,  and  can  be  cured  in  a  short  time, 
that  should  not  count  against  an  apphcant, 
but  care  should  be  taken  that  attention  is 
given  until  the  weakness  disappears.  A  true  eye  and  a 
steady  hand  for  the  full  working  time  are  valuable  assets 
in  every  plant,  and  they  demand  a  sound  healthy  body. 
A  healthy  working  force  and  precautions  for  the  pro- 
tection of  health  are  essentials  for  increasing  efficiency. 
A  strong,  healthy  working  force  is  less  liable  to  accident, 
fatigue,  and  overstrain,  and  promotes  efiiciency  in  every 
form  of  business  activity. 


HIRING  OF  LABOR  117 

A  good  eye  is  a  valuable  asset,  and  particular  attention 
should  be  taken  with  every  applicant  to  ascertain  if  any 
eye-weakness  exists.     Defective  eyesight  is  a 
hindrance  in  any  kind  of  work,  and  this  is  hearing^ 
particularly  true  in  all  work  where  true  and 
keen  eyesight  is  required.     Good  hearing  is  essential  in 
the  majority  of  cases,  and  deafness  is  a  handicap  in 
almost  every  kind  of  work.     Precautions  should  be  taken 
to  test  the  sight  and  the  hearing  of  all  applicants.     There 
are  certain  exterior  signs  which  tell  of  good 
health  and  physical  weakness.     If  the  eyes  health^* 
are  dull,  listless,  and  show  streaks  of  yellow  in 
place  of  clear  white  eyeballs,  it  shows  that  something  is 
wrong  with  the  health  of  the  person.     A  healthy  person's 
finger  nails   are   always  pink  underneath.     Yellow   or 
pallid  skin,  pale  or  blue  lips,  are  indications  of  ill-health 
and  bodily  weakness. 

Physical  endurance  is  a  fundamental  for  efhcient  work 
and  is  a  valuable  asset  in  every  worker.     It  is  in  a  large 
measure  the  result  of  oxygen  taken  into  the  Requisites 
lungs.     A  large  nose  and  wide-open  nostrils  for  physical 
are  needed  to  furnish  the  means  of  a  bountiful  endurance, 
supply  of  oxygen.     Physical  endurance  demands  a  steady 
strong  heart  action,  and  an  accompanying  normal  nervous 
system.     Workers  with  a  weak  heart  should  be  avoided, 
as  the  weakness  sooner  or  later  undermines  health  and 
impairs  efficiency.    A  weak  or  deranged  nerv-  E^g^ts  of 
ous  system  works  against  efficiency,  and  care  weak  ner- 
should  be  taken  in  hiring  to  avoid  those  pos-  "^ous  sys- 
sessing  such  a  physical  defect.     A  weak  nerv-    ^^^' 
ous  system  causes  overstrain,  and  the  consequent  evils 
of  fatigue,  impairs  physical  endurance,  and  undermines 
health.     It  causes  irritability,  and  an  irritable  person  is 
a  factor  working  against  harmony  and  cooperation,  and 
as  such  is  undesirable  in  a  working  force.     Nervousness 


ii8  ECONOMICS  OF  EFFICIENCY 

is  betrayed  in  several  ways.  A  close  observation  during 
an  interview  and  during  the  answering  of  questions  will 
show  the  presence  of  a  weak  nervous  system. 

There  are  many  physical  weaknesses  which  cannot  be 
determined  by  close  observation  of  external  characteris- 
„  ..  tics.  An  employer  should  never  depend  en- 
of  medical  tirely  upon  observation.  A  thorough  medical 
examina-  examination  by  a  physician  should  be  made 
^^^'  before  a  new  worker  is  allowed  to  go  to  work. 

The  examination  should  be  not  only  for  the  purpose  of 
finding  out  present  ailments,  but  if  the  applicant  has 
any  weakness  which  might  in  the  future  develop,  so  as 
to  impair  health  and  efficiency.  If  a  weakness  is  found, 
what  is  its  nature  ?  Can  it  be  cured  by  care  and  medical 
treatment  ?  If  so,  it  should  not  prevent  a  person  from 
Barriers  to  being  hired.  If  a  weakness  interferes  with 
employ-  present  or  future  efficiency,  and  cannot  be 
ment.  remedied,  the  apphcant  should  not  be  taken 

into  a  force.  The  presence  of  any  loathsome  disease 
should  be  a  barrier  to  employment.  It  not  only  under- 
mines the  health  of  the  sufferer,  but  such  diseases  are 
usually  very  contagious,  and  their  presence  might  be  the 
means  of  impairing  the  efficiency  of  several  in  a  force. 
Physicians  should  pay  particular  attention  to  traces  of 
the  drinking  habit.  A  person  addicted  to  the  use  of 
liquor  should  not  be  taken  into  any  working  force,  it 
matters  not  how  unimportant  a  position  it  is.  It  can- 
not be  too  strongly  impressed  on  an  employer  that  one 
absolute  essential  to  work,  it  matters  not  its  character, 
is  a  sound  body.  This  applies  to  the  employer  of  one 
or  two  workers  as  well  as  it  does  to  the  corporation  with 
a  labor  force  of  several  thousand.  The  efficiency  of  a 
working  force  bears  a  close  relation  to  the  percentage  of 
sound  bodies  in  the  force.  The  first  step  to  insure  a 
strong  healthy  working  force  is  the  selection  of  workers 


HIRING  OF  LABOR  119 

with  sound  bodies.  The  work  does  not  end  with  secur- 
ing healthy  sound  workers,  but  extreme  care  should  be 
taken  to  keep  a  force  healthy  and  strong. 

Habits  play  an  important  role  in  efficiency.  Good 
habits  while  at  work  and  while  away  from  a  plant  have 
a  greater  bearing  upon   the  efficiency  of  a 

1  .  r  xi        ^1  1  Habits  vs. 

workmg    force    than    the    average    employer  efficiency, 
realizes.     They  represent  a  valuable  asset  to 
an  employer,  and  as  such  demand  his  close  attention. 
It  is  necessary  to  find  out  the  habits  of  an  applicant 
during   an   interview.     The   effects   of   some  How  to  as- 
habits  are  shown  in  the  features,  or  in  the  certain 
actions  of  men.     Carefully  prepared  questions  *^^^^*s- 
should  be  made  out  and  answered  by  the  applicant.     Note 
should  be  made  of  external  characteristics,  and  of  actions 
during  an  interview.     Questions  on  diet,  regularity  of 
eating  meals,  hours  of  eating,  hours  of  rest,  interest  in 
theaters,  use  of  alcohol,  tobacco,  and  drugs,  interest  in 
games,  papers,  books  and  magazines  read,  card  playing, 
etc.,  furnish  valuable  information  as  to  the  habits  of 
applicants.     All  these  questions  to  the  average  man  may 
seem  frivolous  and  nonsensical,  but  to  the  student  of 
human  nature  they  have  an  important   bearing  upon 
habits,  and  as  such,  are  of  the  utmost  importance  to  a 
person  hiring  men. 

Age  is  always  an  important  consideration.  From 
eighteen  to  thirty-five  are  given  by  experts  as  the  years  of 
maximum  vigor,  but  a  man  from  thirty-five  »  h  't 
to  forty-five,  with  a  sound  body,  good  habits, 
good  eyesight,  and  a  good  set  of  developed  muscles  is  a 
good  investment.  With  work  where  skill,  alertness,  and 
concentration  of  thought  are  necessary,  it  is  advisable  to 
confine  new  workers  to  the  first  age  Hmit. 

The  drifter  or  floater  has  no  place  in  any  laboring  force, 
and  is  an  undesirable  person  in  any  business  enterprise. 


I20  ECONOMICS  OF  EFFICIENCY 

His  presence  usually  causes  friction,  and  detracts  the 
interest  and  attention  of  others  from  their  work.  Drifters 
The  drifter  ^^^  ^^  important  factor  working  against  har- 
in  a  working  mony  and  cooperation  in  a  force.  Extreme 
force.  ^^j.Q  should  be  taken  to  bar  drifters,  because 

every  one  gaining  entrance  to  a  plant  means  not  only 
loss,  but  the  impairing  of  the  efficiency  of  those  around 
him.  Every  applicant  should  be  closely  questioned  about 
previous  places  where  he  had  worked,  and  his  reasons  for 
leaving.     A  drifter  usually  has  a  fund  of  excuses  for  his 

changes,  but  one  who  has  not  a  guilty  con- 
SifTers  *^^    science  is  usually  as  brief  as  possible  in  stating 

his  reasons  for  change.  With  unskilled  or 
semi-skilled  labor,  shrewd  questioning  and  a  careful 
study  of  the  person  while  answering  give  sufficient  evi- 
dence to  decide  whether  or  not  an  applicant  is  a  floater. 
In  cases  of  skilled  workers,  it  is  advisable  to  corroborate 
your  conclusions  by  a  confidential  report  from  the  last 
employer.  ^'To  Whom  it  may  Concern"  letters  are  of 
Httle  or  no  value.  A  list  of  questions  sent  to  the  last 
employer  is  of  great  importance  in  estimating  a  man's 
fitness  for  a  place.  Judgment  should  be  exercised  in 
making  out  the  questions,  and  only  information  asked 
which  is  absolutely  needed  to  decide  an  applicant's  fit- 
ness for  a  vacancy  to  be  filled.  No  standard  Hst  of  ques- 
tions can  be  given  because  the  questions  vary  with  places 
and  with  plants.  Answers  from  employers  are  usually 
prompt  and  honest  because  they  are  coming  to  realize 
that  their  interests  in  this  respect  are  mutual. 

Letters  should  come  from  the  person  who  has  charge 
of  the  employing  of  men.  Wherever  the  old  method  of 
Objections  allowing  the  superintendents  to  hire  and  to 
to  personal  dismiss  is  in  practice,  there  is  an  objection  to 
letters.  personal  letters.     Frequently,  a  good  worker 

arouses  the  antagonism  of  his  superintendent  and  is  dis- 


HIRING  OF  LABOR  121 

missed,  not  because  he  is  inefficient,  but  because  he  has 
aroused  the  hatred  of  his  superior.  Many  superintend- 
ents will  go  out  of  their  way  to  prevent  such  an  employee 
from  getting  a  place  elsewhere,  and  will  take  special 
pains  to  injure  him  in  letters.  If  a  wide  discrepancy 
exists  between  the  estimate  of  fitness  from  an  interview 
and  a  letter  from  a  previous  employer,  care  should  be 
exercised  in  discovering  if  any  reason  exists  for  the  con- 
flicting statements  of  the  letter.  A  man  should  not 
always  be  condemned  because  his  last  employer  gives 
him  a  bad  record,  but  where  there  is  an  employing  expert, 
such  an  attitude  against  a  man  for  personal  reasons  is 
rare. 

A  person  who  is  loud  in  condemnation  or  in  criticism 
of  his  previous  employer  should  be  avoided.     An  employer 
should  guard  against  the  chronic  fault-finder, 
as  a  worker  whose  interests  he  in  criticism  is  jJocke*. 
not  one  to  increase  the  harmony  or  the  co- 
operation of  a  working  force.     He  is  a  disturbing  element, 
and  usually  soon  tires  of  his  present  work,  and  in  place 
of  working  for  the  welfare  of  the  business,  criticizes 
methods  and  surroundings.     A  knocker  has  no  place  in 
any  industrial  enterprise,  and  this  applies  to  all  members 
of  an  organization,  including  those  in  executive  positions. 

Intelligence  is  a  requirement  for  every  kind  of  work. 
Brains  as  well  as  brawn  are  demanded  in  an  unskilled 
laborer,  in  order  not  only  to  perform  intel-  jjnportance 
ligently  the  work  to  be  done,  but  to  permit  ofinteiii- 
development  into  a  semi-skilled  worker.     With  e®°<^®  ^° 
the   unskilled   and    the   semi-skilled    classes,  ^°^  ®^^* 
those  with  intelHgence  are  always  reaching  out  for  new 
methods    and   for   short-cuts.     They   are   more    easily 
trained  and  are  capable  of  attaining  greater  efficiency. 
A  greater  degree  of  intelligence  is  a  requisite  in  the  case 
of  the  skilled  laborer,  as  contrasted  with  the  unskilled  or 


122  ECONOMICS  OF  EFFICIENCY 

the  semi-skilled.  With  highly  specialized  and  automatic 
machines,  a  greater  skill  is  required  in  workers  than  in 
the  case  of  simple  machines.  A  demand  of  efficiency  is 
an  intelligent  working  force.     The  greater  the  degree  of 

intelligence,  the  greater  are  the  chances  of  a 
Scrrtain.       higher  efficiency.     The  average  person  carries 

his  marks  of  intelligence  upon  his  countenance, 
which  a  student  of  human  nature  may  easily  read.  Intel- 
ligence is  manifested  by  the  expression  of  the  eyes,  by  the 
readiness  in  answering  questions,  and  by  the  wording  and 
the  pointedness  of  replies.  What  is  the  education  and 
the  training  of  the  appKcant  ?  What  is  the  nature  of  his 
reading  ?  Does  he  read  any  technical  books  or  magazines 
connected  with  his  work  ?  The  giving  of  a  few  technical 
questions  on  the  applicant's  particular  work  is  a  good 
test  of  intelhgence.  All  the  foregoing  are  little  tests 
which  portray  a  person's  intelligence.  The  aim  of  every 
employer  should  be  to  obtain  the  most  intelligent  men 
possible,  and  special  attention  should  be  paid  to  intelli- 
gence in  an  appUcant  before  employment. 

Thrift  is  a  good  characteristic  in  a  worker.  Thrift  and 
floating  are  seldom  found  in  the  same  person.     A  married 

person  is  usually  steadier  than  one  who  is  un- 
ofSrift^^^    married.     Has  the  applicant  any  property? 

Has  he  a  bank  account  ?  Is  he  married  ?  If 
so,  how  large  a  family?  All  these  are  indications  of 
steadiness. 

Industry  is  a  necessary  fundamental  in  every  worker. 
A  lazy  worker  is  a  handicap  to  every  working  force. 
Industry  a  Special  care  should  be  taken  to  assure  indus- 
requisite'in  try  in  applicants,  so  as  to  avoid  the  entrance 
every  Qf  g^  jg^^y  workcr  into  a  laboring  force.     Man- 

^°^  ^^'  ner  of  walking,  standing,  and  sitting,  and 
attitude  in  shaking  hands  tell  much  to  the  student  of 
human  nature  as  to  the  industry,  the  alertness,  and  the 


HIRING  OF  LABOR  123 

stupidity  of  an  appKcant.      In  the   case  of  unskilled 
labor,  bodily  strength  and  endurance  are  the  worker's 
stock  in  trade.     His  hands  tell  if  he  is  accus- 
tomed to  toil,  and  his  shoulders,  legs,  and  arms  ^JJ^ct!* 
whether  he  has  a  physical  force  to  perform 
the  work.     The  foregoing  observations  are  sufhcient  to 
decide  industry  in  the  case  of  the  unskilled  or  the  semi- 
skilled, but  with  the  skilled  it  is  better  to  further  corrob- 
orate your  decision  by  reference  to  a  previous  employer. 
Precautions  should  be  taken  to  ascertain  the  charac- 
teristics of  an  appUcant  to  decide  whether  or  not  they 
are  Hkely  to  be  helpful  or  detrimental  to  work.   character- 
Honesty  is  a  necessary  quality  in  every  worker,   istics  which 
A  person  carries  many  exterior  signs  of  honesty .  promote 
The  eyes  and  the  mouth  are  good  indices.     A  ^   "®^*^y- 
person  who  seldom  meets  your  gaze,  and  avoids  looking 
you  in  the  eyes  in  an  interview  is  usually  a  person  to  be 
avoided.     Many  experts  claim  that  by  a  person's  eyes 
and  mouth  honesty  can  be  told.     Honesty,  uprightness, 
and  openness  are  qualities  to  look  for.     Gait  on  entering 
a  room,  manner  of  speech  and  gestures  are 
guides  to  foretell  these  important  characteris-  ascrrtain 
tics.     Tact    is    an    important    characteristic. 
Some  experts  ascertain  this  by  questions  as  to  what  would 
be  done  in  special  cases.     Perseverance,  good-temper,  and 
firmness  are  valuable  characteristics,  and  may  be  read 
from  facial  features,  walk,  handshake,  straightforward 
look  in  the  eye  while  questioning,  manner  of  standing 
and  of  sitting,  and  answers  to  questions.     Neatness  and 
tidiness  in  dress  and  in  appearance  usually  foretell  neat- 
ness    and    tidiness    in    work.     Carefulness,    neatness, 
tidiness,  and  system  in  work  are  essential  for  efficiency. 
These  characteristics  may  be  ascertained  by  paying  at- 
tention to  a  person's  dress,  linen,  manners,  shoes,  finger 
nails,  teeth,  and  tidiness  of  person  in  general. 


124  ECONOMICS   OF  EFFICIENCY 

Obstinacy,  sullenness,  quick-temper,  carelessness  and 
slovenliness  are  weaknesses,  and  should  as  far  as  possible 
p,  be  avoided.     They  may  be  overcome,  but  if 

istics  which  a  person  is  past  middle  age,  it  is  difficult  to 
promote  in-  change  habits  formed  in  youth.  All  are 
e  ciency.  weaknesses  affecting  the  efficiency  of  a  working 
force,  and  frequently  considerable  losses  arise  from  their 
presence.  Carelessness  is  a  chief  cause  of  fires,  accidents, 
and  business  losses  arising  from  breakages, 
^etect^  damaged  materials,  and  stoppages  due  to 
breakages.  A  careless  worker  is  an  inefficient 
worker,  and  is  a  factor  of  inefficiency  that  should  be 
eliminated  in  order  to  make  the  working  force  efhcient. 
Special  attention  should  be  paid  to  every  appHcant  to 
ascertain  the  presence  of  carelessness,  and  its  presence 
should  be  sufficient  cause  to  prevent  the  hiring  of  a 
worker. 

Skill  and  experience  are  two  prime  factors  in  a  work- 
ing force.  Has  the  applicant  sufficient  skill  to  do  in  the 
SkiU  and  Hiost  efficient  manner  the  work  that  the  place 
experience  requires?  What  has  been  his  training? 
in  workers.  \Yfia|^  ^^g  been  his  experience  after  receiving 
his  training  ?  What  is  the  length  of  service  in  the  pre- 
vious place  ?  Has  his  work  been  of  the  same  character 
as  that  for  which  he  is  an  applicant  ?  What  training,  in 
the  case  of  a  skilled  mechanic  ?  Has  it  been  along  effi- 
cient lines,  or  not?  If  not,  what  is  the  intelligence  of 
the  appHcant,  and  the  prospect  of  training  in  efficiency 
methods,  or  in  methods  if  different  from  his 
Sclrtain  ^^^^  P^^^^  ^  These  are  some  questions  which 
every  employer  of  men  should  give  careful 
attention  and  care.  The  chief  considerations  are  pre- 
vious records  and  training.  Close  questioning  on  the 
technique  of  his  trade  usually  discloses  a  person's  knowl- 
edge of  his  work.     Letters  from  previous  employers  as  to 


HIRING  OF  LABOR  125 

skill,  work,  promptness,  and  regularity  should  be  given 
careful  consideration.  Too  great  emphasis  cannot  be 
placed  upon  the  necessity  of  care  being  exercised  in  as- 
certaining a  person's  skill,  which  depends  almost  entirely 
upon  his  training  and  experience. 

An  important  power  to  possess  in  hiring  workers  is 
to  be  able  to  decide  from  an  interview  what 
is  the  capability  of  an  applicant.     The  ability  teii  capa° 
to  recognize,  frequently  under  an  unpromising  biiity  is  a 
exterior,  what  a  man  really  is  or  may  grow  into,  ^^g^^^® 
is  valuable  in  hiring  men.     Andrew  Carnegie 
has  an  almost  uncanny  power  of  sizing  up  a  man,  and 
telling  whether  or  not  he  would  make  good  in  a  position, 
or  what   he   would   develop  into.     Where   this  power 
exists,  it  is  a  valuable  asset.     The  average  employer  of 
men  has  not  this  gift  of  nature,  but  is  compelled  to 
depend  largely  upon  his  judgment  and  his  powers  of 
reading  human  nature. 

It  is  an  easy  matter  to  pick  men  who  have  successful 
records  behind  them,  but  a  careful  examination  should 
be  made  because  often  a  man  who  has  been  a  Limitations 
success  in  one  kind  of  business  will  be  a  com-  and  possi- 
plete   failure   in   another.     Frequently,    men  ^iiitiesof 
are  found  who  are  great  successes  in  one  plant, 
and  when  placed  in  another  with  a  new  laboring  force, 
and  new  environments,  fail.     Again,  men  who  have  been 
failures  in  one  plant  may,  in  a  new  environment,  succeed, 
so  a  change  of  place  may  make  a  success  out  of  a  failure. 
The  greatest  asset  for  a  new  man  is  his  ability  to  make 
good,  and  the  greater  the  number  of  newcomers  who 
make  good,  the  less  will  be  the  loss  from  introducing  new 
men,  and  the  greater  the  chance  of  increasing  the  efH- 
ciency  of  the  working  force.     Employers  should  be  on 
the  lookout  for  men  who  excel  in  interviews  but  are 
failures  at  work.     Many  of  these  are  floating  about  in 


126  ECONOMICS  OF  EFFICIENCY 

our  midst,  and  the  shrewdest  hirers  of  labor  are  often 
deceived  by  them.  Care  should  be  taken  against  this 
deception,  and  the  fewer  hired,  the  better  for  any  busi- 
ness enterprise.  Too  great  emphasis  cannot  be  placed 
upon  the  ability  of  a  hirer  of  labor  to  size  up  men,  and 
pick  out  those  who  have  the  abihty  and  the  capacity  to 
make  good  and  become  efficient  workers.  The  abihty 
to  recognize  the  Hmitations  as  well  as  the  possibilities  of 
men  is  very  important.  The  ability  to  size  up  men  for 
these  two  essentials  intuitively  is  found  only  rarely  in 
man  and  is  decidedly  no  common  gift.  It  is  based  in  the 
average  hirer  of  labor  upon  careful  investigation  and 
sound  judgment,  and  not  upon  snap  judgment  or  guess. 

Wherever  an  apprentice  school  is  conducted  by  a  busi- 
ness enterprise,  the  selection  of  apprentices  is  an  im- 
Care  in  portant  task  and  as  great  care  should  be  taken 
selection  of  as  with  applicants  for  the  best  places  in  the 
apprentices,  pi^n^^  Apprentices  are  to  be  the  skilled 
workers  of  the  future,  and  from  their  ranks  the  chief 
executive  places  are  to  be  filled.  The  greatest  care 
should  be  taken  to  select  those  who  have  capabihties. 
They  should  be  under  careful  supervision  during  the 
period  of  apprenticeship  to  ascertain  whether  or  not  any 
mistake  had  been  made  in  foretelling  their  development 
into  efficient  workers. 

The  average  employer  makes  a  mistake  in  not  giving 
care  and  attention  to  acquaint  new  men  with  plant  con- 
ditions, and  to  instruct  them  in  the  duties  of 
men" with^^  their  new  places,  so  that  they  will  become 
new  place  efficient  parts  of  the  organization  in  as  short 
and  training  ^  ^--^^  ^^  possible.  Many  ucw  men  are  put 
to  work  without  a  real  knowledge  of  what  they 
are  to  do,  and  often  they  do  not  understand  what  is 
expected  of  them.  It  is  an  actual  fact  that  in  many 
business  enterprises,  many  of  the  workers  have  only  a 


HIRING  OF  LABOR  127 

hazy  idea  of  what  they  are  expected  to  do.  A  new  worker 
should  be  placed  under  the  direction  of  an  expert,  who 
is  to  carefully  supervise  his  work,  and  to  see  if  he  has  the 
plant  methods  of  performing  his  task.  If  not,  he  should 
be  carefully  instructed  in  the  plant  methods,  and  the 
instruction  should  be  continued  until  proper  habits  of 
work  are  formed,  and  the  worker  becomes  an  efficient 
member  of  the  organization.  The  instruction  of  new 
workers  is  an  important  essential,  and  frequently  effi- 
ciency is  lost  by  paying  Httle  or  no  attention  to  it. 

Each  man  in  a  plant  should  have  his  own  card.  This 
card  should  show  the  time  when  first  entering  the  busi- 
ness, and  his  quaHfications  as  ascertained  from  card  record 
reports  of  previous  employers  and  from  inter-  of  each 
view.  If  a  man  is  discharged,  the  reasons  w^*^^®'^- 
therefor  should  be  placed  on  the  card.  This  is  neces- 
sary in  order  to  prevent  being  imposed  upon  by  worthless 
workers.  The  card  index  should  be  carefully  kept  for 
unskilled  as  for  skilled  workers.  One  case  recently  came 
to  my  notice.  In  a  large  factory,  a  man  was 
hired  and  discharged  as  incompetent  by  five 
different  superintendents  before  it  was  ascertained  that 
he  was  an  impostor.  With  a  centralized  employment 
bureau,  and  a  good  card  index,  such  imposition  would  be 
impossible,  but  under  the  old  system  of  superintendents 
hiring  and  firing  men,  men  were  frequently  dismissed  by 
one  superintendent,  and  the  next  morning  hired  by  a 
superintendent  in  another  department.  System  is  as 
necessary  in  an  employment  department  as  it  is  in  other 
departments,  and  care  should  be  exercised  in  having  an 
efficient  system  and  not  one  over-burdened  with  red 
tape. 

A  prime  essential  for  an  efficient  working  force  is  the 
selecting  of  individuals  who  will  soon  fit  into  an  organi- 
zation and  become  efficient.     It  means  the  replacing  of 


128  ECONOMICS  OF  EFFICIENCY 

the  old  haphazard  method  by  one  based  upon  careful 
investigation  and  sound  judgment.  Even  to-day,  few 
Efficiency  employers  realize  the  importance  of  care  in 
and  the  selecting  qualified  workers  fitted  for  the  places 
hiring  of  to  be  filled.  Efiiciency  demands  care  in  the 
hiring  of  workers,  and  to  the  employer  it  is 
a  dollars-and-cents  proposition.  The  placing  of  hiring 
in  charge  of  a  single  person  rather  than  leaving  it  to 
different  superintendents  is  an  absolute  necessity  in  a 
business  enterprise.  The  careful  study  and  investi- 
gation of  the  needs  of  every  position  will  soon  be 
realized  and  attention  given  to  it.  The  next  few  years 
will  see  the  passing  of  the  old  methods  of  hiring  labor, 
and  the  growing  importance  of  a  new  official,  the  head 
of  the  employment  department,  who  will  not  only  be 
called  upon  to  study  carefully  every  position,  and  in 
case  of  a  vacancy,  fill  it  by  the  choice  of  one  who  is 
best  fitted  by  skill  and  experience  to  perform  efficient 
work,  but  he  will  also  be  called  upon  to  carefully  study 
the  working  force  to  see  that  each  is  assigned  to  work 
for  which  he  is  the  best  adapted,  and  to  select  appren- 
tices and  place  them  so  that  they  will  become  efficient 
workers  after  they  enter  regular  service.  The  hiring  of 
labor  is  so  important  in  every  business  enterprise  that 
one  wonders  why  business  men  were  so  long  blind  to  the 
defects  of  the  old  haphazard,  hire  and  fire  method,  and 
did  not  earlier  realize  the  necessity  of  giving  attention 
and  study  to  it. 

QUESTIONS 

1.  What  have  been  the  changes  in  our  industrial  system  which 
have  increased  the  demand  for  skilled  workers  ? 

2.  What  is  the  old  practice  of  hiring  laborers  ? 

3.  State  and  explain  the  requisites  for  an  efficient  labor  force. 

4.  What  is  the  relation  between  efficiency  and  permanency  in 
service  ? 


HIRING  OF  LABOR  129 

5.  What  are  the  evils  of  constant  hiring  and  firing  ? 

6.  What  is  the  importance  of  a  study  of  the  requirements  of 
places  ? 

7.  Why  is  the  average  superintendent  unfit  to  hire  men  ? 

8.  What  is   a  misfit  in  a  labor  force?      Why  should  he  be 
eliminated  ? 

9.  What  are  the  necessary  steps  in  filling  a  vacancy  ? 

10.  What  is  the  work  of  an  employment  department  ?  What 
are  the  qualities  needed  for  its  head  ? 

11.  Name  and  explain  the  fundamental  qualifications  neces- 
sary for  efiicient  work. 

12.  Mention  different  methods  of  ascertaining  (i)  health, 
(2)  skill,  (3)  habits  of  an  applicant. 

13.  Why  is  a  drifter  undesirable  in  a  working  force  ?  How  may 
a  drifter  be  recognized? 

14.  What  precautions  should  be  taken  with  personal  letters  ? 

15.  What  characteristics  in  laborers  promote  (i)  efficiency, 
(2)  inefficiency? 

REFERENCES 

Books 

Blackford  and  Newcomb,  ''The  Job,  the  Man,  and  the  Boss"; 
N.  A,  Brisco,  "Economics  of  Business,"  Ch.  IX;  The  Business 
Man's  Library,  Vol.  VIII,  "Employer  and  Employee";  E.  Cad- 
bury,  "Experiments  in  Industrial  Organization,"  Ch.  I;  S.Dean, 
"Shop  and  Foundry  Management,"  Article  III;  H.  Diemer, 
"Factory  Organization  and  Administration,"  Ch.  XXII;  H. 
Miinsterberg,  "Psychology  and  Industrial  Efficiency,"  Ch.  X; 
Worman,  H.  A.,  "How  to  get  Workmen." 

Articles 

G.  L.  Avery,  "Recruiting  Able-bodied  Workmen,"  Factory, 
Vol.  II,  pp.  325  +;  G.  K.  Barrett,  "Hiring,  Handling,  and  Firing 
Men,"  Factory,  Vol.  IV,  pp.  320  +  ;  G.  K.  Barrett,  "Judging  Work- 
men by  their  Hands,"  Factory,  Vol.  V,  pp.  355  +  ;  K.  M.  H.  Black- 
ford, "Rating  Men,"  Greater  Efficiency,  Vol.  Ill,  pp.  4-17; 
S.  H.  Bunnell,  "  Careful  Choice  of  Men,  its  Importance,"  American 
Machinist,  Vol.  36,  pp.  58-59 ;  J.  T.  Crabb,  "  Scientific  Hiring," 
The   Efficiency  Society  Transactions,  Vol.  I,  pp.  313-318;    H. 


I30  ECONOMICS  OF  EFFICIENCY 

Emerson,  ''The  Scientific  Selection  of  Employees,"  The  Efficiency 
Society  Transactions,  Vol.  I,  pp.  341-344;  J.  A.  Furer,  ''Hiring 
Men  on  Basis  of  Physique  and  Skill,"  American  Machinist,  Vol.  40, 
pp.  51-54;  F.  C.  Herderschott,  "Methods  of  Selecting  Men  in 
Business,"  The  National  Association  of  Corporation  Schools, 
Bulletin  I,  pp.  31-45;  B.  J.  Hendrick,  "Fitting  the  Man  to  his 
Job,"  McClure,  Vol.  41,  pp.  50-59;  B.  J.  Hendrick,  "Scientific 
Employment  Plan,"  Review  of  Reviews,  Vol.  48,  pp.  567-576; 
C.  L.  Herrick,  "How  to  Select  Best  Men,"  Modern  Methods, 
Vol.  19,  pp.  387-390 ;  F.  L.  Jandron,  "Selection  and  Employment," 
Engineering  Magazine,  Vol.  45,  pp.  562-567 ;  J.  T.  Lincoln, 
"On  the  Buyingof  Labor,"  Manufacturer's  Record,  April  25, 1912; 
F.  W.  Loughran,  "The  Necessity  of  Physical  Examination  of 
Applicants  for  Employment,"  The  Efficiency  Society  Transactions, 
Vol.  I,  pp.  313-318;  H.  W.  Merton,  "Analyzing  Character  by 
Study  of  the  Faces,"  Business,  Vol.  31,  p.  270;  C.  D.  Murphy, 
"Man  for  the  Job,"  System,  Vol.  23,  pp.  402-410 ;  C.  D.  Murphy, 
"Living  up  to  Your  Employment  System,"  System,  Vol.  24, 
pp.  18-25;  H.  Newton,  "Scientific  Employment  of  Men,"  Scien- 
tific American,  Vol.  109,  pp.  68  +  ;  G.  Sacerdote,  "Is  the  Right 
Man  in  the  Right  Place  ?"  American  Machinist,  Vol.  35,  pp.  927- 
928;  H.  A.  Worman,  "Finding  the  Right  Man,"  Factory,  Vol.  I, 
p.  59  + ;  "  To  Pick  Workers  Scientifically,"  Literary  Digest,  Vol.  46, 
pp.  703  +. 


CHAPTER  VII 

Training 

The  industrial  revolution  ushered  in  many  changes  in 
methods  of  production  and  transportation.     The  nu- 
merous inventions  which  made  the  industrial  Changes 
revolution  possible  almost  completely  revo-  ^u^°^^^^^ 
lutionized  our  industrial  system.     Concentra-  dustriai 
tion  of  industry,  high  speciaKzation  of  labor,  revolution, 
increase  in  the  use  of  capital,  rapid  introduction  of  labor- 
saving  machinery,  and  organization  of  workers  followed 
with  great  rapidity.     The  progress  of  industriaHsm  led  to 
keen  competition,  to  increasing  the  size  of  the  produc- 
ing plant,  and  to  assigning  an  ever-increasing  number  of 
workers  to  remain  throughout  their  lives  in  the  wage- 
earning   class.     The   modern   organization   of  industry 
which  followed,  and  which  is  based  on  capital  means  the 
employment  of  numbers  of  workers  as  wage-earners, 
whose  duties  and  only  responsibilities  are  the  perform- 
ance of  the  productive  tasks  assigned  to  them.     Towards 
the  end  of  the  nineteenth  century  a  few  progressive 
employers  realized  that  a  serious  mistake  had  been  made 
in  neglecting  the  human  hands  which  ran  the  Little  atten- 
machines.     Little  or  no  attention  had  been  tion  paid  to 
paid  to  the  human  element,  to  the  worker  ^^^°'^- 
upon  whom  the  efhciency  of  a  machine  largely  depends. 
Employers  did  not  awaken  to  the  fact  of  their  neglect 
until  they  found  themselves  seriously  handicapped  by  a 
scarcity  of  skilled  hands  which  were  found  necessary  to 
obtain  greater  efhciency  from  their  expensive  and  highly 
complicated  machines. 

131 


132  ECONOMICS  OF  EFFICIENCY 

The  haste  to  secure  industrial  development  during  the 
nineteenth  century  caused  employers  to  neglect  the  pro- 
Training  of  viding  of  adequate  training  for  workers.  Near 
workers  the  close  of  the  century,  the  absence  of  system- 
neglected.  ^^^^  training  resulted  in  a  scarcity  of  properly 
trained  men,  and  placed  industry  in  a  serious  situation. 
It  looked  as  though  the  lack  of  trained  men  would  to  a 
certain  degree  block  industrial  development.  The  train- 
ing of  men  did  not  keep  pace  with  the  rapid  industrial 
development,  due  to  the  fact  that  men  were  neglected 
for  machines.  Employers  had  concentrated  their  at- 
tention on  improvements  in  machinery,  and  had  for- 
gotten to  lay  the  basis  for  future  development  by  train- 
ing workers  who  were  to  make  the  complicated  machines 
productive  and  efficient. 

Employers  did  not,  until  the  dawn  of  the  twentieth 
century,  realize  that  industrial  and  commercial  su- 
importance  P^^macy  depended  in  a  large  measure  upon  a 
of  properly  skilled  body  of  wage  earners.  It  cannot  be  too 
trained  strongly  emphasized  that  the  great  cornerstone 

wor  ers.  ^£  ^^^  future  industrial  growth  depends  upon 
a  supply  of  industrial  workers,  intelligently  trained  to 
perform  their  various  tasks  with  the  greatest  efficiency. 
The  industrial  country  which  will  successfully  compete 
in  the  world's  market  will  be  the  one  which  produces 
with  the  greatest  efficiency.  The  one  absolute  essential 
is  a  properly  trained  laboring  force,  one  which  com- 
bines with  general  intelligence,  the  broadest  technical 
knowledge  and  widest  technical  skill.  The  advance 
of  industry  depends  in  a  large  measure  upon  intelligent 
workers,  —  workers  who  have  been  trained  so 
worke?^^^^*  that  they  possess  sufficient  knowledge  and 
fiexibiHty  of  mind  to  turn  readily  from  one 
thing  to  something  else  according  to  the  demands  of  im- 
provements and  of  industry.     An  efficient  worker  is  one 


TRAINING  133 

trained  so  that  he  has  a  broad  knowledge  concerning  the 
technical  side  of  his  task,  the  machines  which  he  works, 
and  commercial  business  in  general,  other  than  perform- 
ing the  few  simple  motions  which  his  task  may  demand. 
The  training  of  men  so  as  to  assure  trained  and  effi- 
cient workers  for  the  future  is  the  keynote  of  industrial 
progress.     The  backbone  of  a  business  enter-  importance 
prise,  it  matters  not  its  character,  is  its  con-  of  training 
tented  and  satisfied   trained  workers.     Em-  '"workers, 
ployers  should  have  it  emphasized  that  skilled  workers 
are  not  born  but  are  made  by  training.     The  demand 
to-day,  if  we  are  to  continue  to  advance  as  rapidly  in 
the  industrial  field  as  we  have  in  the  past,  is  the  sys- 
tematic training  and  education  of  American  workers. 
The  complicated  machines,  systems,  and  methods  found 
in  the  average  industrial  plant  demand  workers,  skilled, 
resourceful,  and  intelKgent.     The  question  arises,  how 
are  we  to  train  American  youth  to  develop  a  body  of 
efficient  workers.     This  is  one  of  the  most  important 
questions  confronting  industrialism  to-day.     Large  sums 
of  money  have  been  spent  employing  experts  to  devise 
suitable  methods  of  training.     Many  systems 
have  been  devised  and  found  supporters.     The  train 
question  as  to  what  is  best,  in  order  to  produce  workers  is 
the  most  efficient  workers  with  the  least  eco-  J^®  ^^°^' 
nomic  waste  has  not  been  unanimously  agreed 
upon.     American   industrial  supremacy  depends  upon 
the  solution  of  this  problem,  and  with  so  much  at  stake, 
American  genius,  which  has  always  solved  difficult  in- 
dustrial problems  in  the  past,  will  bring  forth  a  satis- 
factory system  of  training.     The  guarantee  of  a  large 
supply  of   efficient  workers  will  be   a   great   boon  to 
American  industry,  and  will  be  an  important  factor  in 
placing  America  in  the  van  as  the  greatest  industrial 
country  in  the  whole  industrial  world. 


134  ECONOMICS  OF  EFFICIENCY 

For  more  than  a  century  after  the  introduction  of 
the  factory  system,  the  only  system  of  training  was  the 
The  ap-  apprenticeship  system,  a  system  borrowed 
prenticeship  from  the  domestic  system,  the  previous  system 
system.  q£  industrial  production.  The  old  appren- 
ticeship system  dates  back  to  the  reign  of  Queen  Elizabeth, 
when  a  statute  declared  that  no  person  should  exercise 

any  trade  or  "mystery"  without  serving  an 
i^tics^*^*^^"     apprenticeship  of  seven  years.     A  boy  would 

bind  himself  to  a  master,  work  for  him,  and 
live  in  his  home  as  a  member  of  his  family.  The  master 
was  his  guardian,  and  was  responsible  for  his  physical 
welfare,  his  moral  and  intellectual  development,  as  well 
as  his  training  in  the  art  or  "mysteries"  of  his  trade. 
During  the  early  years  of  the  system,  the  master  work- 
man bought  the  raw  materials,  worked  them  up  into 
finished  articles  with  his  assistants,  and  sold  the  finished 
goods.  The  apprentice,  who  was  to  become  a  master, 
was  at  once  both  assistant  and  learner,  and  received  a 
training  which  it  was  to  the  advantage  of  the  master 
to  make  as  thorough  as  possible.  The  apprentice  and 
his  master  were  usually  from  the  same  social  class  and 
were  socially  equal.  The  apprentice  looked  forward 
to  becoming  in  a  few  years  a  master  himself,  and  this 
.  anticipation  was  usually  fulfilled.     The  first 

limitation  was  when  many  guilds  succeeded 
in  Hmiting  mastership  to  the  families  of  guild  members. 
This  restriction  made  it  impossible  for  many  to  become 
other  than  wage-earners. 

As  long  as  the  handicraft  and  domestic  systems  pre- 
Abusesin  vailed,  the  old  apprenticeship  system  served 
the  ap-  its  purpose  fairly  well.      Nevertheless,  during 

prenticeship  the  domestic  system,  many  abuses  arose  to 
sys  em.  ^^^  disadvantage  of  the  apprentice.  With 
the  coming  of  the  journeyman,  the  close  relation  which 


TRAINING  135 

formerly  existed  between  master  and  apprentice  became 
more  distant.  The  apprentice  during  his  indenture 
became  merely  a  chattel  of  his  master,  and  many  ad- 
vantages were  taken  from  him.  No  method  of  instruc- 
tion was  in  practice,  and  the  apprentice  was  supposed 
to  learn  his  trade  from  observing  the  journeyman  and 
receiving  instructions  from  him.  He  usually  devoted 
most  of  his  time  to  menial  work  in  no  way  connected 
with  his  trade.  The  master  had  more  important  things 
to  look  after,  and  paid  Httle  or  no  attention  to  whether 
his  apprentices  were  receiving  instruction  or  not.  The 
journeymen  cared  httle  about  the  apprentices,  looked 
upon  them  as  coming  competitors,  and  did  everything 
to  discourage  rather  than  encourage  them.  Many  an 
apprentice  served  his  time,  and  at  the  end 
lacked  considerable  of  being  a  skilled  mechanic.  S^l^f  ^"" 

rrn  r  •       i  •      1  •  i  i  ^^  training. 

Ine  long  term  of  apprenticeship  did  not  always 
make  it  possible  for  the  apprentice  to  master  his  trade 
and  to  become  a  skilled  mechanic.  The  old  apprentice- 
ship system  was  the  crudest  possible  form  of  imparting 
knowledge  and  of  training.  The  fear  that  people  would 
be  imposed  upon  if  a  long  service  of  years  was  not  taken 
in  learning  a  trade  did  not  assure  proper  training,  and 
the  average  apprentice,  after  many  years  of  service,  was 
frequently  poorly  equipped  for  becoming  a  journeyman. 
Yet  with  all  its  defects,  apprenticeship  furnished  for 
centuries  the  only  system  of  training  workers. 

The  numerous  inventions  of  machinery  during  the 
latter  part  of  the  eighteenth  century  led  to  concentration 
of  industry  and  greater  specialization  of  labor.  The 
new  changes  in  the  industrial  system  worked  against 
the  old  apprenticeship  system.  It  was  soon  discovered 
that  it  was  not  necessary  to  have  a  worker  trained  in  all 
the  elements  of  a  trade  in  order  to  attend  a  machine 
making  only  one  part  of  an  article,  which  under  the 


136  ECONOMICS  OF  EFFICIENCY 

previous  domestic  system,  was  made  entirely  by  a  work- 
man. New  methods  of  production  made  old  regulations 
The  repeal  burdensome.  Manufacturers  soon  began  a 
of  the  EUza-  movement  for  the  repeal  of  the  old  EKzabethan 
bethaniaw.  law,  and  finally  succeeded  in  1 8 14.  The  repeal 
of  the  old  law  did  not  abolish  training  by  the  old  system, 
but  it  continued  with  more  or  less  of  the  old  rigor. 
In  some  trades,  the  old  time  limit  was  maintained  for 
years,  while  in  others  it  was  lessened.  The  form  of 
Indentures  signing  indenture  papers  continued  for  years 
common  after  the  introduction  of  the  factory  system, 
until  1840.  ^^^  ^^Q  qJj  legal  indentures  were  common  and 
in  everyday  use  as  late  as  1840.  Soon  after  this,  the 
old  system  of  indenture  began  to  decKne,  and  by  the 
civil  war  it  had  disappeared  from  many  trades.  Never- 
theless, to-day  it  is  not  entirely  out  of  use,  for  a  few  oc- 
casional instances  are  still  found  in  practice.  Although 
the  old  indenture  remains,  it  is  very  difficult,  if  not  im- 
possible, to  find  an  instance  where  the  same  conditions 
prevail  as  under  the  old  system. 

By  the  close  of  the  civil  war,  the  regulations  and 
customs  of  the  old  apprenticeship  system  had  gone 
Modified  i^^^o  disuse,  and  a  modified  form  took  its  place, 
apprentice-  This  in  principle  was  based  upon  the  old  ap- 
ship.  prenticeship,  but  in  practice  differed  from  it. 

The  trade  unions  became  great  champions  of  appren- 
ticeship, and  their  object  was  not  to  assure  a  supply  of 
trained  workers,  but  to  limit  the  number  in  a 
unions  trade,  through  limiting  the  number  of  appren- 

tices and  prolonging  the  time  to  learn  the 
trade.  Frequently,  trade  unions  placed  so  many  re- 
strictions upon  apprenticeship  that  many  employers 
refused  to  be  troubled  with  apprentices.  The  policy 
from  the  civil  war  to  the  close  of  the  century,  as  far  as 
trade  unions  were  concerned,  was  to  protect  their  par- 


TRAINING  137 

ticular  trades  through  limiting  the  number  and  regulat- 
ing the  training  of  apprentices.  Many  trades  were 
under  the  absolute  control  of  unions,  and  this  policy 
soon  made  itself  felt  in  a  scarcity  of  skilled  workers  in 
particular  trades. 

Factories,  until  1890,  were  of  medium  size,  and  em- 
ployers had  little  difhculty  in  obtaining  the  number 
of  skilled  workers  which  they  wished.     They 
were  wilhng  and  usually  compelled  to  obey  the  j^and  after" 
dictates  of  unions.     When   the   rather  phe-  1890  for 
nomenal  expansion  of  industry  began  about  the  ^^^^^ 
year  1890,  combinations,  consoHdations,  and 
an  increasing  size  of  the  producing  plant  followed,  and 
there  began  an  extraordinary  demand  for  skilled  labor. 
The  enlarged  plant  brought  with  it  more  compHcated 
and  intricate  machinery,  and  as  a  result,  more  skill  and 
inteUigence  on   the  part  of  workers  were   demanded. 
The  increased  demand  for  skilled  workers  came  suddenly, 
and  when  employers  sought  skilled  workers,  they  found 
a  great  scarcity.     The  old  restrictive  pohcy  of  trade 
unions  in  regard  to  apprentices  threatened  to  xhe  opposi- 
check  industrial  extension.     The  cry  suddenly  tion  of 
arose  for  some  system  of  training  so  as  to  guaran-  "^o^^- 
tee  a  supply  of  skilled  men.     The  unions  fought  bitterly 
to  protect  their  pohcy  of  restriction,  and  assailed  every 
attempt  to  educate  and  provide  skilled  workers  other 
than  by  the  old  methods.     They  could  see,  with  their 
narrow  vision,  nothing  but  lower  wages  with  an  increased 
number  of  trained  men,  and  did  not  see  that  the  great 
expansion  which  would  follow  would  not  only  take  the 
surplus,  but  increase  the  demand  for  labor,  and  increase 
wages.     Three  avenues  opened  for  the  training  of  skilled 
workers  :  firstly,  manufacturers  to  take  matters  into  their 
own  hands  and  to  educate  their  own  men;    secondly, 
employers  and  the  public  working  together ;  and  thirdly, 


138  ECONOMICS  OF  EFFICIENCY 

the  public  through  properly  equipped  schools.  The 
first  gave  us  the  new  apprenticeship,  the  second,  coop- 
erative industrial  institutions,  and  the  third,  various 
varieties  of  industrial  and  trade  schools. 

Skill  means,  besides  manual  dexterity,  speed  and 
accuracy.  The  two  latter  come  as  a  result  of  careful 
training  until  habit  is  formed.  Efficiency  de- 
meanin?  pends  upon  forming  proper  habits  of  perform- 
ance of  work,  and  the  elimination  of  unneces- 
sary movements.  It  demands  the  ability  to  do  the 
right  kind  of  thing  without  being  told,  and  the  right 
thing  with  being  told.  This  comes  as  a  result  of  careful 
training. 

Efiiciency  demands  that  knowledge  should  take  the 
place  of  guesswork.  The  old  saying  ^^  Knowledge  is 
Requisites  P^wer  "  is  in  business  changed  to  ^ '  The  applica- 
for  an  ef-  tion  of  knowledge  is  power."  This  is  a  funda- 
ficient  mental  basis  of  efficiency,  and  demands  in 

worker.  workers  more  than  the  manual  skill  necessary 
in  performing  a  task.  No  man  can  become  an  efficient 
worker  who  does  not  understand  the  scientific  principles 
underlying  his  trade.  A  skilled  worker  should  know,  if 
working  with  a  machine,  the  intricacies  of  the  machine, 
and  should  have  a  knowledge  of  the  material  with  which 
he  is  working,  and  of  the  commercial  side  of  business. 
An  intelligent  worker  is  one  of  the  demands  of  efficiency, 
and  requires  a  knowledge  of  subjects  alHed  to  and  kindred 
to  his  particular  trade.  A  training  of  the 
SteUigence  ^^^^  ^.nd  of  the  hands  is  necessary  in  our 
struggle  for  industrial  supremacy.  Proper 
training  is  required  to  develop  industrial  intelligence. 
Stress  in  the  training  of  skilled  workers  should  be  placed 
upon  intelligence  as  well  as  upon  manual  skill.  In- 
telligence should  be  developed  so  that  men  will  work 
with  economy  of  time,  material,  and  effort. 


TRAINING  139 

Industrial  progress   demands   trained  minds,   skilled 
hands,  and  the  adaptabihty  of  workers  to  the  perform- 
ance of  their  tasks.     Proper  adaptability  is  a 
demand  of  efficiency.     The  choice  of  appren- 
tices who  are  adapted  to  particular  trades  is  essential, 
and  demands  the  closest  attention.     It  requires  close 
observation   during   apprenticeship.     As   soon   as  it  is 
found  that  a  boy  is  not  adapted  to  the  trade  that  he  is 
learning,  he  should  not  be  allowed  to  continue,  his  case 
should  be  studied  and  if  possible  a  trade  chosen  for 
which  he  is  adapted.     With  few  exceptions,  every  one 
should  be  trained  to  work  so  as  to  hke  it.     The  habits  of 
carelessness,  laziness,  and  slovenHness  are  so  easily  ac- 
quired that  training  is  a  good  antidote  to  work.     With 
proper  training,  skill,  speed,  and  accuracy  are  acquired, 
and  pride  grows  in  one's  work.     Emphasis  should  be 
strongly  placed  on  careful  training  in  the  best  Training  in 
methods  of  performance  of  work,  so  as  to  ac-  best 
quire  habits  of  work  which  guarantee  perform-  °^®t^o<is. 
ance  with  the  greatest  efficiency.     With  careful  training, 
and  the  acquiring  of  proper  habits,  appreciation  in  work 
grows,  and  this  assures  a  proper  attitude  towards  work. 

Training  is  of  national  interest  as  well  as  of  the  great- 
est importance  to  business  men.  With  properly  trained 
workers,  the  economic  wastes  arising  from  in- 

.  .     .      Wastes 

competency  and  ignorance  would  be  elimi-  fromin- 

nated.     This   would   result  in  the  saving  of  competence 

millions   of   dollars   annually,   would   benefit  ^^^  ^^°°" 

employers  by  increasing  profits,  employees  by 

increasing  wages,  and  the  nation  at  large  by  giving  a 

higher  standard  of  living  and  a  better  class 

of  citizens.     Incompetency  and  ignorance,  the   eliminate 

arch-enemies  of  efficiency,  are  found  lurking 

in  every  business  enterprise.     They  cause  failures,  low 

wages,  poverty,  and  suffering,  and  if  their  presence  is 


I40  ECONOMICS  OF  EFFICIENCY 

too  prominent,  prevent  industrial  progress.  Efficiency 
demands  that  incompetence  and  ignorance  should  give 
place  to  skill,  intelligence,  and  competency.  The  neces- 
sity of  the  presence  of  these  qualities  in  a  working  force 
emphasizes  the  importance  of  proper  training. 

During  the  last  few  years,  business  and  railroad  cor- 
porations have  been  taking  a  greater  interest  in  the  train- 
ing of  employees.  A  tendency  towards  the  general 
adoption  of  some  form  of  apprenticeship  is  decidedly 
marked  in  all  industries  where  such  a  system  is  practical. 
The  apprenticeship  or  corporation  school,  as  it  has  come 
to  be  called,  has  had  a  rapid  growth  and  is  yearly  in- 
creasing in  favor.  It  represents  a  revival  of  the  old  ap- 
prenticeship system  in  an  improved  form,  and  adapted 
to  the  needs  of  modern  industry.  So  important  was  the 
The  cor-  Corporation  school  considered  as  a  factor  in 
poration  industry  that  in  January,  191 3,  a  number  of 
school.  representatives  of  the  leading  corporations  pos- 

sessing schools  met  at  New  York  University,  and  organized 
the  National  Association  of  Corporation  Schools.  The 
activities  of  the  Association  will  undoubtedly  increase 
the  importance  of  this  system  of  training  apprentices, 
and  raise  the  standard  of  the  schools  now  in  operation. 
It  seems  that  the  corporation  school  is  destined  to  be- 
come a  favorite  system  for  training  employees. 

Corporation  schools  vary  widely  in  methods  of  in- 
struction. Many  are  as  yet  poorly  organized,  and  are 
not  efficiently  conducted.  Many  do  not  pro- 
insteuction  ^'^^^  ^^y  ^i^^-^s  of  classroom  instruction,  but 
encourage  or  insist  upon  attendance  at  pub- 
licly conducted  evening  classes.  An  effective  appren- 
ciassroom  ticeship  school  should  have  classroom  as  well 
and  shop  as  shop  instruction.  The  most  satisfactory 
instruction,  ^le^hod  is  to  havc  competent  instructors  for 
classroom  work  and  for  shop  work.     In  large  enterprises, 


TRAINING  141 

two  sets  of  instructors  should  be  maintained,  but  in 
small,  the  classroom  instructors  may  be  also  the  shop 
instructors. 

Both  shop  and  class  instructors  should  be  men  of 
practical  experience.     Shop  instructors  should  be  chosen 
from  the  best  skilled  men  in  the  laboring  force,   QuaUties 
and  should  be  men  who  know  thoroughly  their  for  capable 
work,  and  are  good  instructors.     They  should  instructors, 
be  familiar  with  the  methods  and  the  practices  of  the 
plant,  and  should  inspire  the  confidence  of  the  young 
apprentices  in  the  business.     Class  instructors  should 
be  graduates  of  technical  schools,  or  graduates  of  ap- 
prenticeship schools  with  advanced  training  elsewhere. 
They  should  be  not  only  competent  teachers,  but  in- 
telHgent,  moral,  and  temperate  men.     Instructors  should 
encourage  clean  personal  habits,  inculcate  right  importance 
ideas  of  work,  and  exert  a  wholesome  influence  of  good 
over  boys,  so  that  they  will  become  temperate  ^instructors, 
and  honest  men  with  a  high  sense  of  moral  duty.     Care 
should  be  taken  that  instructors  are  thoroughly  sincere 
in  their  loyalty  and  interest  in  the  enterprise,  and  heartily 
cooperate  with  the  management  in  working  for  success. 
This  is  absolutely  essential  because  instructors  should 
by  their  sincerity  and  earnestness  in  instructing  and  in 
dealing  with  apprentices,  arouse  their  loyalty  to  the  busi- 
ness enterprise,  and  an  interest  and  enthusiasm  in  their 
work.     This  will  later  assure  a  hearty  cooperation  which 
is  so  essential  for  success  in  any  business  undertaking. 

The  selection  of  apprentices  should  be  made  with 
extreme    care.      A    basic    test    is    the    physical.      A 
thorough    physical    examination    should    be  Requisites 
made  of  each  appKcant,  and  if  any  defects  are  in  selection 
foimd  that  interfere  or  would  be  likely  to  ofappren- 
interfere  with  his  becoming  an  efficient  skilled 
worker,  he  should  not  be  taken.     Sixteen  years  should 


142  ECONOMICS  OF  EFFICIENCY 

be  the  minimum  age  for  applicants,  while  the  maximum 
should   not    exceed   twenty- two.     An   intelligence    test 

Intern  ence    ^^  ^^^  ^^^  ^^  ^  Written  or  oral  examination  is 

necessary.  If  a  boy  has  reached  the  age  of 
sixteen  and  is  not  competent  to  pass  a  good  examination 
in  the  common  school  branches,  the  chances  are  against 

his    becoming    a    competent    skilled   worker. 

Particular  attention  should  be  paid  to  the 
moral  character  of  an  applicant.  No  one  should  be 
allowed  to  become  an  apprentice  until  a  thorough  in- 
vestigation has  been  made  into  his  moral  character 
and  habits.  Character  is  an  absolute  essential  in  the 
making  of  an  efficient  worker,  and  should  be  carefully 
heeded  in  the  choice  of  those  who  are  to  become  in  the 

future  the  backbone  of  an  enterprise.  Care 
^^  ^  ^'  should  be  exercised  to  ascertain  a  boy's  adap- 
tability to  the  trade  which  he  wishes  to  learn.  Much 
time  is  wasted,  and  additional  expense  is  incurred  in 
carrying  boys  for  some  time  who  are  not  adapted  to  the 
trade  chosen,  and  would  never  becomxC  skilled,  competent 
workers. 

The  ability  which  makes  one  man  worth  more  than 
another  in  doing  a  particular  work  is  not  acquired  alone 

by  practice,  but  is  partly  transmitted  to  him 
abmty  from  his  ancestors.     If  a  boy  has  not  latent 

ability  to  develop,  training  will  not  develop 
him  into  an  efficient  worker.  An  important  problem 
is  the  selection  of  boys  who  possess  the  ability  necessary 
for  development  into  efficient  workers. 

The  usual  period  of  apprenticeship  is  four  years, 
and  this  is  sufficient  to  learn  any  trade.  After  the 
Period  of  probation  period  is  passed,  many  corporations 
apprentice-  insist  upon  written  contracts  drawn  up  be- 
ship.  tween  them  and  the  parents  or  the  guardians  of 

the  boys  with  the  boys'  consent,     A  few  insist  upon 


TRAINING  143 

deposits  on  the  part  of  the  boys  or  their  parents,  as  a 
guarantee  of  good  faith  in  fulfilKng  the  period  of  ap- 
prenticeship. An  allowance  is  usually  made  for  previous 
shop  experience.  A  period  of  probation  from  three  to 
six  months  should  be  given  all  apprentices,  and  par- 
ticular attention  should  be  given  to  weeding  out  un- 
desirables, and  those  not  adapted  to  the  particular 
trade  chosen. 

A  decided  advantage  in  favor  of  the  corporation  school 
is  that  apprentices  receive  pay  during  their  apprentice- 
ship.    Many  capable  young  boys  must  earn  or 
help  to  earn  their  own  Hving,  and  so  a  course  at  p^^^^^  ^^^^ 
a  trade  or  industrial  school  is  impossible.     A 
standard  of  wages  is  fixed  for  apprentices,  but  this  varies 
with  corporations.     There  is  usually  an  increase  at  the 
completion  of  each  six  months  of  work.     The  average 
corporation  gives  a  bonus  of  from  fifty  to  a  hundred  and 
fifty  dollars  at  the  completion  of  the  course.     The  wages 
paid  are  usually  sufficient  to  allow  a  young  man  to  hve 
economically. 

Corporation  schools  are  not  confined  to  manufacturing 
enterprises  and  railroad  companies.  Many  retail  and 
wholesale  estabHshments  have  schools,  and  the  «r^_^  ^_ 

r       T  1  >  .1    Where  cor- 

time  IS  not  far  distant  when  banks  and  financial  poration 
institutions  will   install  schools   for    training  schools  are 
their  own  employees.     These  training  schools  ^°^^* 
should  not  be  confused  with  the  numerous  educational 
courses    carried   on   by   many    estabHshments   for    the 
benefit  of  their  employees.     These  courses  are  usually 
conducted  at  night,  but  a  few  corporations  have  them 
during  working  hours.     Educational   courses   and  lec- 
tures have  a  beneficial  influence,  but  do  not  take  the 
place  of  a  carefully  planned  apprenticeship  school. 

The  training  of  each  apprentice  should  be  along  two 
distinct  lines,  the  one  academic,  received  in  the  school- 


144  ECONOMICS  OF  EFFICIENCY 

room,  and  the  other  practical,  given  in  the  shop.     The 

aim  is  to  teach  a  boy  a  trade,  and  that  trade  cannot  be 

properly  learned  miless  he  knows  mathematics, 

Sofii^i^^  °^  mechanics,  and  the  fundamentals  of  the  science 

training.  ' 

which  accompanies  the  trade.  Shop  man- 
agement, business  methods,  business  English,  and  fire 
and  accident  prevention  are  subjects  which  should  be 
taught  every  apprentice.  Courses  and  subjects  to  be 
.     ,     .        taught  in   the  schoolroom  vary  with  enter- 

prises.  In  some,  the  fundamental  principles 
of  salesmanship  and  advertising  are  essential  while  in 
others  they  are  not.     No  standard  course  of  study  can 

be  outlined,  because  such  must  necessarily 

vary  with  business  enterprises.  The  effi- 
ciency of  an  academic  course  depends  upon  the  effi- 
ciency of  the  instructors  in  outlining  those  subjects 
which  are  allied  to  the  trade  and  business,  and  which 
assist  in  making  the  apprentices  efficient  and  capable 
workers. 

Many  corporations  do  not  teach  academic  courses 
in  the  plant,  and  have  their  apprentices  attend  evening 
Training  classes  elscwhcre.  Usually,  they  are  the 
outside  the  classes  Conducted  by  the  public  school  system 
plant.  q£  ^Yie  city,  or  by  some  organization.     Boys 

are  not  paid  for  attendance,  and  must  attend  a  certain 
number  of  hours  weekly,  usually  four.  The  giving  of 
academic  training  in  evening  schools,  in  or  outside  of  a 
plant,  is  unsatisfactory.  Every  corporation  with  a 
school  should  have  it  in  charge  of  competent  instruc- 
tors, and  school  work  should  be  given  during  the  working 
day.  It  should  compel  attendance  in  the  classroom 
during  working  time,  and  the  boys  should  receive  the 
same  pay  for  classroom  work  as  for  shop.  The  hours 
of  attendance  at  present  vary  from  plant  to  plant,  but 
the  favorite  time  seems  to  be  from  seven  to  nine  a.m., 


TRAINING  145 

with  four  the  average  number  of  hours  of  classroom  work 
per  week.  Some  corporation  schools  are  open  through- 
out the  year,  while  others  run  ten  months. 

At  least  six,  and  even  eight  hours  of  academic  instruc- 
tion should  be  given  the  first  year  of  apprenticeship, 
and  lessened  to  four  or  six  the  second  and  the  third. 
If  a  boy  has  had  previous  academic  training, 
allowance    should    be    made   in    attendance,  ^gtmction 
Three  years  should  be  sufficient  to  give  train- 
ing in   academic  work.     Apprentices   should   be  under 
the  same  discipHne  as  employees  in  the  shop,   and  it 
should    be    strictly    enforced.     The    average 
corporation   school   does   not    give    any   ex-  ^ons"^^' 
amination  in  academic  work,  holding  that  the 
instructor   should  know  each   student's   advancement. 
Written  examinations  give  the  best  results,  and  with 
prizes  for  good  work,  better  results  may  be 
obtained.     The  average  school  uses  few  text- 
books, and  the  work   consists   chiefly  of  written  exer- 
cises and  problems  chosen  by  the  instructor.     The  best 
results  may  be   obtained  by  having  carefully  outlined 
courses  with  suitable  textbooks.      The  Baldwin  Loco- 
motive Company  requires  apprentices  to  attend  a  free 
school  two  evenings  per  week  for  twenty-four  weeks 
during  the  year.     Attendance  is  required  for  two  or 
three  years,  depending  upon  academic  training  before 
entering  the  plant.     No  system  of  reports  from  instruc- 
tors is  required.     A  boy's  written  statement  made  weekly 
that  he  has  attended  school  for  two  evenings  during  the 
past  week  is  accepted  by  the  superintendent.     The  day 
upon  which  a  boy  attends  evening  school  he  is  excused 
with  full  pay  one  or  two  hours  earher  in  order  to  enable 
him  to  go  home  for  supper,  and  to  prepare  for  school. 

The  number  of  years  of  apprenticeship  may  vary  in 
the  same  plant  for  different  trades.     The  General  Electric 


146  ECONOMICS  OF  EFFICIENCY 

Company  of  Lynn,  Massachusetts,  has  the  following 
courses  :  (A)  machinists,  die  and  tool  makers,  four  years ; 
Cotirses  of  ^  )  pattern  makers,  four  years  ;  in  either  A 
the  General  or  B,  graduates  of  high  school  may  finish  the 
Electric  course  in  three  years ;  (C)  iron,  steel,  and 
ompany.  i^j-g^gg  molders  and  steam  fitters,  two  years, 
including  trial  period;  (D)  draftsmen  and  designers 
three  years  ;  (E)  electrical  testers,  three  years ;  (F)  tech- 
nical clerks,  two  years.  This  company  has  student 
courses  to  which  only  selected  graduates  of  recognized 
colleges  and  universities  are  admitted.  Special  courses 
of  training  may  be  established  when  required.  The  pay 
for  the  different  courses  is  as  follows :  A  and  B,  ten  cents 
an  hour  for  the  first  year,  twelve  for  the  second,  fourteen 
for  the  third,  and  sixteen  and  a  half  for  the  fourth  with 
a  bonus  of  one  hundred  dollars  on  the  completion  of  a 
satisfactory  course ;  C,  ten  cents  the  first  half  year, 
twelve  cents  the  second  half  year,  and  fourteen  cents 
the  second  year,  with  a  bonus  of  fifty  dollars ;  D  and  E, 
twelve  cents  the  first  half  year,  fourteen  cents  the  second 
half,  sixteen  cents  the  second  year,  twenty  cents  the 
third  year,  with  a  bonus  of  seventy-five  dollars ;  F,  twelve 
cents  the  first  half  year,  fourteen  cents  the  second  half, 
sixteen  cents  the  second  year,  with  a  bonus  of  fifty 
dollars. 

Many  methods  are  in  practice  for  academic  teaching 
in  corporation  schools.  The  most  efficient  schools  have 
Best  method  Carefully  outlined  courses  for  the  apprentices 
for  academic  of  each  trade,  or  for  closely  related  trades, 
work.  Many  give  only  one  course,  which  all  appren- 

tices are  to  attend.  Unless  all  the  trades  taught  are 
closely  related,  this  does  not  give  satisfactory  results. 
The  most  satisfactory  system  is  to  have  carefully  out- 
Hned  courses  for  the  different  trades  taught,  and  not  to 
group,  except  where  trades  are  so  closely  related  that 


TRAINING  147 

they  require  practically  the  same  academic  and  theo- 
retical training.  If  it  is  business  to  have  an  appren- 
ticeship school,  it  is  business  to  have  it  conducted  so  as 
to  obtain  the  greatest  efficiency  and  best  results.  Many 
changes  should  be  made  in  the  majority  of  existing 
schools  in  order  to  make  them  efficient,  and  give  the 
greatest  returns  for  the  amount  of  money  expended. 

Shop  instruction  should  be  given  by  special  shop  in- 
structors, but  in  many  schools  there  are  no  regular 
instructors,  and  the  boys  are  dependent  upon  . 

the  shop  foremen  and  the  workers  for  instruc-  gtruction. 
tion  in  their  trade,  as  is  the  case  in  the  Baldwin 
Locomotive  Works.     Shop  work  should  be  under  the 
supervision  and  the  direction  of  shop  instructors,  who 
should  be  the  best  skilled  workers  in  the  plant.     Greater 
efficiency  is  obtained  if  the  instructors  are  required  to 
receive  special  training  for  their  work.     They  Essentials 
should  be  specialists  in  their  trade,  and  should  for  good 
make  a  special  study  of  the  various  methods  of  instructors, 
performing  the   trade   that   they   are  to  teach.     Only 
standard  methods  should  be  taught,  and  these  should 
be  the  best  possible  for  local  conditions.     A  shop  in- 
structor should  always  be  on  the  lookout  for  better  and 
more  efficient  methods,  and  if  after  careful  examination 
and  testing  such  are  found,  they  should  be  made  stand- 
ard, and  it  is  the  duty  of  the  shop  instructor  to  introduce 
same. 

There  is  a  growing  practice  to  maintain  practice  shops 
where  apprentices  do  the  first  part  of  their  shop  work. 
The   regular    commercial   product   is    made  . 

and  only  apprentices  do  the  work.     Extreme  ghops^.*^^ 
patience  is  essential  for  getting  apprentices 
started  in  standard  methods,  and  in  a  way  to  arouse 
interest  in  their  work.    When  the  shop  instructor  con- 
siders an  apprentice  sufficiently  developed,  a  transfer  is 


148  ECONOMICS  OF  EFFICIENCY 

made   to  the  shop   proper   for   the   remainder  of  the 
apprenticeship.     No  fixed  course  can  be  laid  out,  because 

some  apprentices  are  more  apt  than  others 
ducted!^'       ^^  learning,  and  do  not  need  so  much  time 

in  certain  departments.  Each  apprentice 
is  advanced  in  the  shop  as  he  has,  according  to  the 
judgment  of  the  shop  instructor,  acquired  the  necessary- 
industrial  capacity.  Frequently,  apprentices  who  have 
been  some  time  in  the  shop  proper  if  the  quality  and  the 
quantity  of  their  work  are  of  low  standard,  are  sent 
back  to  the  training  room.  By  competent  instruction 
and  standard  methods,  the  grade  of  skilled  labor  may 
be  greatly  increased.  A  great  deal  depends  upon  proper 
training  and  the  acquiring  of  proper  habits  of  doing 
work.  On  satisfactory  completion  of  the  time  of  ap- 
prenticeship, in  school  and  shop,  a  diploma  or  certificate 
is  usually  given.  Apprentices  are  not  compelled  to 
remain  with  the  corporation,  but  are  encouraged  to 
become  a  permanent  part  of  the  plant  organization. 

Graduates  of  properly  conducted  corporation  schools 
are  able  to  do  high  grade  work,  and  make  not  only  ca- 
increasing  P^-ble  and  efficient  workers,  but  from  their 
favor  of  ranks,  capable  foremen  and  executive  officers 
corporation     may  be  chosen.     With  proper  instruction  by 

competent  instructors,  the  average  apprentice 
when  he  becomes  a  regular  employee  has  usually  ac- 
quired loyalty  and  interest,  and  at  once  heartily  cooper- 
ates with  the  management.  The  training  received  in 
a  shop  makes  apprentices  familiar  with  shop  fife,  and 
when  they  become  regular  workers,  no  time  is  lost  and 
no  additional  expenditure  is  necessary  in  breaking  them 
in  as  integral  parts  of  the  organization.  Where  a  high 
grade  of  skill  is  required,  and  many  workers  are  em- 
ployed, the  corporation  school  is  a  dollars-and-cents 
proposition.     It  assures  a  supply  of  competent  skilled 


TRAINING  149 

workers.  A  great  increase  in  the  number  of  these  schools 
will  take  place  in  the  near  future,  and  the  time  is  not  far 
distant  when  every  large  business  enterprise  will  have  its 
school  for  apprentices.  Time  will  remedy  many  defects 
which  are  found  at  present  in  many  of  our  corporation 
schools.  The  efficient  corporation  school  has  come  to 
stay  as  an  important  factor  in  our  industrial  system, 
and  its  importance  is  daily  becoming  more  recognized. 

Due  to  the  fact  that  corporation  schools  are  only 
possible  in  large  enterprises,  they  cannot  be  relied  upon 
to  provide  the  entire  industrial  training,  cooperative 
Where  it  is  practicable,  the  corporation  school  industrial 
properly  organized  and  conducted  is  satis-  schools, 
factory  in  the  training  of  apprentices.  A  system  closely 
alHed  to  this  system  is  that  of  cooperative  industrial 
schools.  Academic  and  theoretical  training  are  given 
in  educational  institutions  while  shop  training  is  given 
in  producing  shops.  This  is  a  cooperation  between 
employers  and  educational  institutions.  The  coopera- 
tion is  brought  about  in  a  variety  of  ways.  A  particular 
town  or  city  usually  has  its  own  scheme  worked  out  to 
meet  local  conditions.  If  properly  conducted,  the  sys- 
tem brings  results,  although  it  is  not  as  efficient  or  satis- 
factory as  where  the  training  is  given  entirely  in  one 
establishment. 

Cooperative  schools  differ  materially  in  their  methods 
of  training.     A  favorite  method  is  where  an  apprentice 
spends  half  his  time  in  school,  and  half  in  a 
shop.     The  usual  arrangement  in  half-time  ^alS^g^^^ 
schools  is  to  have  two  apprentices  to  a  job, 
and  each  to  spend  alternating  weeks  in  school  and  in 
shop.     In  some  schools  all  of  the  first  year  is  spent  in 
school  work,  and  shop  work  does  not  start 
until  the  second  year.     Examples  of  the  half- 
time  system  are  the  University  of  Cincinnati,  Fitchburg 


ISO  ECONOMICS  OF  EFFICIENCY 

High  School,  Fitchburg,  Mass.,  Technical  High  School, 
Providence,  R.  L,  and  Lewis  Institute,  Chicago,  111. 
A  second  form  of  the  part-time  system  is  where  the  ap- 
prentice attends  school  much  less  than  half  time,  usually 
being  excused  from  regular  work  in  the  shop  a  few  hours 
a  week  to  attend  some  educational  institution  where 
subjects  correlated  with  the  trade  are  taught,  as  the 
FrankHn  Union,  Boston,  Mass.,  Mechanics'  Institute, 
Rochester,  N.  Y. ;  and  a  third  is  where  attendance 
at  school  is  only  during  slack  time  as  in  the  Horace 
Mann  and  James  Otis  Schools  in  Chicago,  111.  Ap- 
prentices are  usually  paid  for  shop  practice,  but  not  for 
attendance  in  school. 

The  cooperative  system  is  a  decided  improvement 
over  the  ordinary  industrial  school,  but  is  not  as  efficient 
Cooperative  ^^  the  corporation  school.  Apprentices  work 
vs.  corpora-  in  a  producing  plant,  and  get  acquainted  to  a 
tion  schools.  (3gi-|^aij^  degree  with  shop  practice.  The  aca- 
demic training  is  usually  better  than  in  the  corporation 
school,  but  the  shop  is  not  nearly  so  efficient.  The  ap- 
prentices in  the  shop  are  usually  supposed  to  get  their 
instruction  from  foremen  or  skilled  workers.  Some- 
times school  instructors  visit  shops  and  direct  the 
work  of  boys.  This  arrangement  will  not  produce  the 
spirit  of  loyalty  and  cooperation  as  will  having  all  boys 
under  special  shop  instructors.  With  special  pains  to 
improve  shop  instruction,  and  assure  the  teaching  of 
standard  methods  by  having  the  boys  under  special  ex- 
perts as  shop  instructors,  the  cooperative  schools  may 
be  greatly  improved  and  made  more  efficient. 

Many  kinds  of  evening  schools  are  in  operation, 
Industrial  having  as  their  aim  the  improvement  of  indus- 
evening  trial  education  and  training.  Evening  schools 
schools.  ^gj.g  £j.g^  intended  to  give  workers  a  rudi- 
mentary education.     Later,  the  need  of  some  correla- 


TRAINING  151 

tion  between  academic  and  shop  practice  made  itself 
felt,  and  the  continuation  school  developed.     Courses 
were  given  in  subjects  related  to  trades,  as  j, 
mechanical  drawing,  shop  arithmetic,  indus- 
trial   chemistry,    etc.     No    provisions   were    made    for 
practical   training   as  preparation  for  a   trade,   or  for 
special  advancement  in  a  trade.     As  a  result  of  this 
demand,  evening  vocational  and  evening  trade  schools 
came  into  existence.     Evening  industrial  schools  may 
be  grouped  under  three  heads,  continuation,   _ 
vocational,  and  trade,  and  may  be  pubHc  or 
private.     Industrial  evening  schools,  in  giving  employees 
knowledge  of  subjects  related  to  their  trades,  perform 
an  important  work  in  promoting  industrial  education. 
They  have  a  drawback  in  that  instruction  is  given  in 
the  evening,  and  is  not  sufficient  to  give  the  training 
necessary  to  make  skilled  workers.     As  supplementary 
aids  in  industrial  education,  they  perform  an  important 
work,   and   materially   assist  in   giving   academic   and 
theoretical  training. 

Industrial  training  in  public  schools  is  a  recent  de- 
velopment, and  it  is  only  since  1900  that  it  has  become 
general.     The   universal   demand   for   better  industrial 
trained  workers  has  led  recently  to  much  im-  training  in 
provement  in  industrial  training.     Many  pub-  v^^^ic 
lie  and  private  institutions  have  been  organ- 
ized to  better  equip  boys  and  girls  for  their  life's  work, 
and  many  old  institutions  have  added  courses  for  that 
purpose.     The  question  of  industrial  training  is  attract- 
ing much  attention  from  educators,  business  men,  and 
legislators,  and  during  the  next  few  years  many  im- 
provements   may    be    looked    for.     Industrial,    trade, 
manual  training,   and  vocational  are  names  given   to 
schools  for  training  and  better  equipping  boys  to  be- 
come better  and  more  efficient  workers. 


152  ECONOMICS  OF  EFFICIENCY 

Industrial  is  the  name  given  to  those  schools  which 
train  in  the  general  aspects  of  industry,  and  do  not 
Character-  speciaHze  their  training  to  the  extent  of  teach- 
istics  of  an  ing  specific  trades.  Many  do  not  differen- 
industriai  tiate  between  industrial  and  trade  schools, 
school.  ^^^  ^l^gy  ^j.^  distinct.     An  industrial  school 

is  not  designed  to  teach  any  one  trade,  but  teaches  what 
is  necessary  for  the  practical  working  of  trades.  In- 
dustrial schools  serve  as  an  important  factor  in  prepar- 
ing boys  to  be  better  equipped  when  they  begin  their 
apprenticeship.  Many  boys  leave  public  school  at 
fourteen,  and  few  trades  are  open  to  them  as  appren- 
tices until  sixteen.  Industrial  schools  may  perform 
an  important  function  in  extending  the  time  of  these 
boys  in  school,  and  making  them  much  better  equipped 
Industrial  ^^  become  skilled  workers.  Our  educational 
courses  in  System  could  be  materially  changed  to  the 
grammar  benefit  of  the  American  people  by  having 
sc  00  s.  industrial  courses  in  the  last  year  or  two  of  the 
grammar  schools.  Many  boys  leave  grammar  school 
and  become  unskilled  workers ;  if  they  learn  any  trade, 
it  is  usually  poorly  learned,  and  many  remain  unskilled 
throughout  their  lives.  The  industrial  school  is  best 
suited  to  prepare  boys  for  their  vocations  by  giving  them 
training  during  the  gap,  as  it  were,  between  leaving 
grammar  school  and  entering  a  trade ;  that  is,  from  four- 
teen to  sixteen  years.  Public  industrial  schools  may 
prove  of  great  service  in  teaching  those  subjects  closely 
related  to  the  trades,  and  by  so  doing  make  young  boys 
better  equipped  to  become  apprentices. 

The  trade  school  is  for  the  purpose  of  giving  the  train- 
ing for  trades  which  was  acquired  formerly 
schools  under   the   old  apprenticeship  system.     The 

trade  school  of  the  old  type  simply  taught  a 
trade,  and  the  student  spent  practically  all  of  his  time  in 


TRAINING  153 

shop  work.  The  trade  school  of  the  modern  type  gives 
some  academic  instruction  in  subjects  alHed  to  a  trade 
as  well  as  teaches  the  trade  itself.  In  1907,  the  first 
public  trade  school  came  into  existence,  when  the  city 
of  Milwaukee  took  over  the  Milwaukee  School  of  Trades, 
a  private  institution,  and  before  that  time,  trade  schools 
were  private  institutions.  Since  1907,  many  Require- 
pubHc  trade  schools  have  been  opened  in  dif-  ments  for 
ferent  cities.  A  properly  organized,  equipped,  efficiency, 
and  conducted  trade  school  gives  satisfactory  results. 
A  trade  school  should  give  academic  training  as  well  as 
practical,  and  should  be  equipped  with  the  best  possible 
equipment  for  the  teaching  of  trades.  The  backbone  of 
success  is  the  instructing  staff.  Care  should  be  exer- 
cised in  ascertaining  the  best  methods  for  performing 
the  different  movements  in  learning  a  trade,  these 
should  be  standardized  and  taught.  If  some  system 
could  be  evolved  for  standardizing  movements,  so  that 
only  the  best  were  reduced  to  habit-form,  a  great 
advancement  would  be  made  in  eliminating  waste. 
Strict  supervision  is  required,  and  the  same 
carefulness  should  be  exercised  in  working  as  of*work^^°° 
if  working  on  goods  for  sale.  Usually  the 
output  of  a  school  goes  to  the  scrap-heap  and  is  not  sold 
in  the  market.  Learners  are  hkely  to  become  careless 
and  slovenly  in  their  work,  and  this  should  not  be  toler- 
ated. Instructors  should  insist  that  in  the  acquiring 
of  the  best  methods  and  best  habits,  speed  is  heeded. 
Several  manufacturers  complain  that  boys  who  are 
taught  in  trade  schools  are  slow  and  do  not  possess 
speed.  The  acquiring  of  speed  is  an  absolute  essential 
in  forming  habit.  Properly  equipped  trade  schools 
with  efficient  instructors  teaching  standard  methods 
are  important  factors  in  acquiring  efficiency.  They 
cannot  take  the  place  of  corporation  schools,  but  after 
these,  are  the  most  efficient  means  of  training. 


154  ECONOMICS  OF  EFFICIENCY 

Trade  preparatory  schools  are  meeting  the  demand  for 
some  system  of  training  for  boys  from  fourteen  to  six- 
Trade  pre-  teen  years.  They  form  an  important  factor 
paratory  in  our  industrial  training  and  should  receive 
schools.  more  attention  in  the  future.  They  teach  the 
elements  of  a  trade,  the  fundamentals  of  industry,  and 
some  practice.  Their  purpose  is  to  give  a  training  that 
prepares  students  to  enter  trade  and  corporation  schools. 
Manual  training  has  received  considerable  attention 
in  our  country.  It  began  with  secondary  schools,  and 
Manual  ^^.ter  courses  were  given  in  the  elementary 
training  schools.  The  aim  is  not  vocational,  that  is, 
schools.  ^Q  equip  a  boy  directly  for  industrial  pursuits, 
but  is  cultural.  Statistics  show  that  a  very  small  per- 
centage of  graduates  of  manual  training  schools  enter 
trades.  Manual  training  is  beneficial  in  giving  better 
equipment  for  the  industrial  pursuits,  and  in  furnishing 
boys  a  wider  outlook  in  choosing  a  vocation. 

The   vocational    school   is   an   industrial    school  for 
the    purpose    of    preparing    boys    for    vocations.      Its 

aim  is  the  giving  of  training  for  the  purpose 
schoois^^     of  directing  a  pupil  toward  a  trade,  or  other 

manual  occupation,  rather  than  as  a  part  of  a 
direct  and  intensive  preparation  for  skilled  workers. 
The  course  is  usually  two  years,  open  to  graduates  of 
elementary  schools,  and  to  those  who  have  reached  the 
age  of  fourteen  and  are  prepared  to  undertake  the  work. 

The  purpose  is  not  to  turn  out  skilled  workers, 

urpose.        ^^^  ^^  prepare  pupils  to  be  better  equipped  to 

enter  trade  and  corporation  schools.     Vocational  schools 

do  not  supersede  high  schools,  but  offer  inducements  to 

keep  boys  at  school  until  the  age  when  they  may  enter 

trade  and  corporation  schools,  and  to  give  them 

mpo  ance.    ^  pj-^ctical  and  an  academic  training  that  will 

be  of  service  to  them  in  their  later  training.     The  voca- 


TRAINING  1 55 

tional  school  is  a  necessity,  and  its  place  is  absolutely- 
necessary  in  the  training  of  more  efficient  industrial 
workers.  Every  city  in  the  United  States  should  have 
these  schools,  and  they  should  be  equipped  and  conducted 
at  pubHc  expense.  They  have  come  at  an  opportune 
time,  and  their  importance  will  soon  be  so  recognized 
that  they  will  be  found  in  every  city  in  the  United 
States. 

'^We  are  getting  only  50  per  cent  of  the  ability  of  the 
workmen  in  our  factory,"  said  the  foreman  of  a  large 
plant.  ^'How  to  get  ninety  per  cent  and  keep  ^^^^  gyg_ 
their  goodwill  is  the  all-important  question."  temsfor 
An  important  question  to  every  employer  is  training 
how  to  increase  the  efficiency  of  his  men.  "^^^  ^^^' 
Efficiency  has  awakened  employers  to  many  wastes  in 
the  old  methods  of  doing  things.  One  of  the  greatest 
wastes  is  that  of  misdirected  energy,  and  this  introduces 
the  question  of  training.  Training  is  a  requisite  in  the 
elimination  of  wastes  due  to  misdirected  energy.  The 
question  of  training  includes  school  and  shop  education. 
How  to  furnish  industry  with  the  best  trained  workers 
is  an  important  question  which  this  country  must  solve. 
The  question  of  preparation  is  important,  and  to  solve 
this  problem,  vocational  schools  are  a  necessity  in  our 
educational  system.  They  should  be  equipped  and  con- 
ducted at  public  expense,  and  their  value  in  preparing 
young  boys  for  trades  cannot  be  too  strongly  empha- 
sized. Practical  training  for  trades  should  be  given 
in  trade  and  corporation  schools.  Properly  conducted 
corporation  schools  are  best  for  the  training  of  efficient 
workers  and  have  become  a  permanent  fixture  in  the 
efficiency  movement.  Trade  schools  will  continue  a 
strong  factor  in  training,  but  they  should  be  equipped 
and  conducted  at  pubHc  expense.  They  demand  extreme 
care  and  supervision  to  bring  them  to  a  high  standard. 


156  ECONOMICS  OF  EFFICIENCY 

Efficiency  of  the  training  in  trade  and  corporation  schools 
depends  upon  instructors  and  methods.  The  crucial  point 
is  the  following  of  standard  methods  until  habits  are 
formed.  Vocational,  trade,  and  corporation  schools  are 
the  chief  systems  of  industrial  training.  The  numerous 
varieties  found  of  industrial  schools,  both  day  and  evening, 
should  not  be  criticized,  because  each  has  its  place  in 
industrial  education,  and  each  is  performing  its  task  of 
better  equipping  industrial  workers  for  doing  more  effi- 
cient work. 

QUESTIONS 

1.  What  is  the  importance  of  properly  trained  workers  in  our 
industrial  system?  Why  was  training  neglected  during  the 
nineteenth  century  ? 

2.  Give  the  characteristics  of  the  apprenticeship  system. 
What  were  the  abuses  of  that  system  ? 

3.  In  what  way  did  trade  unions  control  apprenticeship  during 
the  latter  part  of  the  nineteenth  century  ?  Account  for  the  oppo- 
sition of  trade  unions  to  industrial  education. 

4.  What  wastes  are  due  to  incompetence  and  ignorance? 
How  may  these  wastes  be  eliminated  ? 

5.  Give  the  evolution  of  the  corporation  school.  Why  has  it 
become  an  integral  part  of  our  industrial  system  ? 

6.  What  are  the  requisites  for  an  efficient  corporation  school  ? 

7.  What  should  be  the  characteristics  of  capable  instructors? 

8.  What  precautions  should  be  taken  in  the  choice  of  appren- 
tices ?    Why  ? 

9.  What  is  the  purpose  of  the  practice  shop  ?  What  precautions 
should  be  taken  to  make  it  efficient  ? 

10.  What  are  cooperative  industrial  schools?    What  are  the 
essentials  for  a  good  school  ? 

11.  Give  the  evolution  of  industrial  training  in  public  schools. 
What  are  the  characteristics  of  the  industrial  school  ? 

12.  What  is  the  function  of  the  trade  school  in  our  industrial 
system  ?     What  are  the  requisites  of  a  good  trade  school  ? 

13.  What  are  trade  preparatory  schools? 

14.  What  is  the  purpose  of  manual  training  schools?     What 
requisites  are  necessary  for  a  good  school? 

15.  What  is  the  place  of  the  vocational  school  in  industrial  train- 
ing ?    Account  for  its  importance. 


TRAINING  157 


REFERENCES 

Books 

Adams  and  Sumner,  "Labor  Problems,"  pp.  433-460;  H. 
Beckwith,  "German  Industrial  Education,"  United  States,  Bureau 
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ing," Ch.  XI;  W.  F.  Book,  "The  Psychology  of  Skill";  R.  A. 
Bray,  "Boy  Labor  and  Apprenticeship,"  Chs.  I,  II,  V,  VI;  F.  T. 
Carlton,  "The  History  and  Problems  of  Organized  Labor,"  Ch. 
XVII;  F.  T.  Carlton,  "The  Industrial  Situation,"  Ch.  IV;  F.  T. 
Carlton,  "Education  and  Industrial  Evolution,"  Chs.  VII,  X; 
J.  R.  Commons,  "Labor  and  Administration,"  Ch.  XX;  E.  G. 
Cooley,  "Vocational  Education  in  Europe";  L.  M.  Gilbreth, 
"The  Psychology  of  Management,"  Ch.  VIII;  P.  H.  Hanus, 
"Beginnings  in  Industrial  Education,"  Chs.  I-V;  "Industrial 
Education,"  American  Federation  of  Labor,  1910;  "Industrial 
Education  in  Germany,"  United  States,  Bureau  of  Education, 
Bulletin,  1913,  No.  54,  pp.  1-75;  A.  H.  Leake,  "Industrial  Edu- 
cation"; Massachusetts  Bureau  of  Statistics  of  Labor,  "The 
Apprenticeship  System,"  Report,  1906;  Massachusetts,  Commis- 
sion on  Industrial  and  Technical  Education,  Report,  1906 ;  M.  R. 
McCann,  "Fitchburg  Plan  of  Cooperative  Industrial  Education," 
United  States  Bureau  of  Education,  Bulletin,  1913 ,  Vol.  50, 
pp.  1-28;  J.  M.  Motley,  "Apprenticeship  in  American  Trade 
Unions";  H.  Miinsterberg,  "Psychology  and  Industrial 
Efficiency,"  Chs.  IV,  V,  XIII,  XIV;  New  Jersey  Commission 
on  Industrial  Education,  Report  1909;  New  York,  Bureau  of 
Labor  Statistics,  Report  1908  —  Part  I,  "Industrial  Training"; 
H.  S.  Person,  "Industrial  Education";  The  System  Co.,  "How 
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"The  Apprenticeship  System  in  its  Relation  to  Industrial  Edu- 
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number,  389. 

Articles 

M.  W.  Alexander,  "Training  of  Men,"  Engineering  Magazine, 
Vol.  39,  pp.  100-102;  L.  P.  Ayers,  "Factors  affecting  Industrial 
Education,"  Elementary  School  Teacher,  Vol.  14,  pp.  313-318; 
G.  M.  Basford,  "The  New  Apprenticeship,"  American  Machinist, 
Vol.  34,  pp.  321-322  ;  W.  Bowden,  "Education  for  the  Industrial 


158  ECONOMICS  OF  EFFICIENCY 

Advance  of  the  Wage  Earner,"  Education,  Vol.  34,  pp.  69-77  I 
H.  Diemer,  "Factory  Organization  in  Relation  to  Industrial  Edu- 
cation," Annals  American  Academy  of  Political  and  Social  Science, 
Vol.  44,  pp.  130-140;  C.  E.  Dounton,  "Training  Mechanics  and 
Engineers,"  American  Machinist,  Vol.  36,  pp.  85-88;  W.  B. 
Hunter,  "  Educating  for  Efficiency,"  Human  Engineering,  Vol.  I, 
pp.  241-248;  J.  F.  Johnson,  "Commercial  Education,"  The 
Efficiency  Society  Transactions,  Vol.  I,  pp.  187-193  ;  G.  Keschen- 
steiner,  "Technical  Day  Trade  Schools  in  Germany,"  School 
Review,  Vol.  19,  pp.  295-317;  P.  Kreuzpointer,  "Industrial 
Education,  its  Relation  to  Commerce  and  Industry,"  Southern 
Machinery,  Vol.  28,  pp.  43-44;  P.  Kreuzpointer,  "New  Standard 
of  the  Present  Day  Industrial  Education  in  Europe,"  National  Edu- 
cation Association,  1911,  pp.  740-747;  L.  M.  Leavitt,  "Need, 
Purpose,  and  Possibilities  of  Industrial  Education  in  the  Elemen- 
tary School,"  Elementary  School  Teacher,  Vol.  13,  pp.  80-90; 
H.  E.  Miles,  "Training  the  Apprentice,"  Proceedings  of  the  First 
Cooperative  Safety  Congress,  pp.  211-218;  J.  A.  Pratt,  "Modern 
Apprenticeship  Training,"  National  Education  Association,  191 2, 
pp.  955-965;  E.  G.  Payne,  "How  Industrial  Education  is  Con- 
trolled in  Germany,"  Survey,  Vol.  30,  pp.  405-407  ;  C.  A.  Prosser, 
"Facilities  for  Industrial  Education,"  National  Education  Asso- 
ciation, 191 2,  pp.  1 196-1202  ;  G.  A.  Stephens,  "The  New  Appren- 
ticeship," Journal  of  Political  Economy,  Vol.  19,  pp.  17-35; 
Thomas  and  Dennison,  "Showing  Employees  how  to  Work," 
Factory,  Vol.  9,  pp.  515  +  ;  A.  D.  Wilhams,  "Modern  Apprentice- 
ship," Sibley  Journal  of  Engineering,  Vol.  26,  pp.  176-180; 
C.  H.  Winslow,  "Machinist  Trade  Apprenticeships,"  American 
Machinist,  Vol.  36,  pp.  142-146;  E.  M.  WooUey,  "The  Training 
of  Workmen,"  System,  Vol.  19,  pp.  468-476. 


CHAPTER  VIII 
Habits 

The  great  countries  of  the  world  are  competing  with 
one  another  for  industrial  supremacy.     Industrial  expan- 
sion depends  in  a  large  measure  upon  efE-  industrial 
ciency.     Accordingly,  every  factor  which  has  expansion 
a  bearing  upon  efficiency  is  of  the  utmost  im-  ^^^ . 
portance  to  business  men.     Of  all  the  factors,   ^   "ency. 
the  human  is  recognized  as  the  most  important,  and  indus- 
trial progress  and  development  depend  more  upon  it 
than  any  other.     An  important  question  to  solve  is  how 
to  attain  the  greatest  efficiency  from  human  hands  and 
bodies.     This  demands  the  study  of  many  factors  which 
until  recently  business  men  thought  were  of  little  use  to 
them,  either  in  the  building  up  of  a  business  or  in  the 
acquiring  of  profits.     One  of   the  most  in-  Habit,  a 
teresting  and  important  of  these  factors  is  factor  in 
habit,  and  the  more  careful  study  that  is  made  efficiency, 
of  it,  the  more  importance  is  attached  to  its  place  in 
efficiency,  industrial  development,  and  progress. 

Human  efficiency  depends  largely  upon  the  rapidity 
and  the  promptness  with  which  workers  are  able  to  per- 
form their  tasks.  In  general,  tasks  become 
accurate  and  rapid  in  the  degree  to  which  ^omhabit*^ 
workers  are  able  to  reduce  their  performance 
to  habits.  It  stands  to  reason  that  the  most  efficient  way 
to  use  a  man's  energy  is  to  allow  him  to  follow  habit  in 
thought  and  in  action.  It  is  surprising  to  a  person  when 
he  finds  out  how  rapidly  he  can  do  habitual  acts,  and  how 

159 


i6o  ECONOMICS  OF  EFFICIENCY 

slowly  he  performs  a  task  to  which  he  is  compelled  to 
give  specific  attention.  Habit-formation  is  the  greatest 
labor-saving  device  in  industry.  Through  a  proper  use 
of  habits,  the  efficiency  of  men  in  fundamental  operations 
may  be  increased  from  40  to  400  per  cent. 

Habit  has  been  defined  as  a  condition  of  body  or  mind 
or  both,  which  has  been  established  by  repetition  of  an 

act  or  mental  process  or  both.  It  is  an  indi- 
of\^it°°      vidual   characteristic   and   varies   with   each 

person.  Some  habits  make  Hfe  safer  and  more 
efficient,  whilst  others  sap  vitality,  dry  up  sources  of 
energy,  and  work  toward  inefficiency. 

A  person  should  not  confuse  habit  with  instinct,  be- 
cause the  two  terms  are  not  synonymous  but  different. 

Habits  are  acquired,  while  instincts  are  in- 
habit!*^  ^^     herent.     Instincts  are  innate  tendencies  which 

are  born  with  men,  and  have  a  profound  in- 
fluence on  the  development  of  actions.  Animal  Hfe  is 
completely  controlled  by  instinctive  impulses.  The 
squirrel  hides  his  nuts  and  the  fox  buries  his  food.  Each 
blindly  provides  against  future  want.  The  number  of 
instincts  in  man  is  far  greater  than  in  animals.  Instincts 
are  fixed  and  defy  education  and  training.  Fear,  anger. 
Character-  curiosity,  jealousy,  rivalry,  and  constructive- 
istics  of  ness  are  a  few  of  our  instincts.  All  through 
instincts.  j|£g^  instincts  serve  as  a  background  for  the 
acquired  capacities.  They  determine  action  when  ex- 
perience has  failed,  and  often  conffict  with  acquired 
knowledge  when  that  knowledge  has  been  fully  developed. 
Instincts  are  characteristics  of  a  whole  class,  while 
habit  are  acquired  during  a  Hfetime,  and  vary  with 
individuals. 

The  formation  of  habit  is  directly  confined  to  the 
nervous  system.  The  nervous  system  is  very  plastic,  and 
every  impression  makes  its  nerve  path.     Every  repeti- 


HABITS  i6i 

tion  of  the  original  impression  simply  deepens  the  nerve 
paths  already  made.     Each  repetition  of  a  past  action 
or  familiar  impulse  enables  it  to  travel  with 
less  friction  along  the   trodden   path.      One  ^f  t^e  nerv- 
might  liken  what  occurs  to  the  process  by  ous  system 
which  a  path  is  made  across  a  meadow.     The  J^j^^^f 
first  person  may  have  selected  his  route  for  no 
cause  whatever,  and  his  course  may  have  been  straight 
or  devious,  but  he  left  a  mark  in  the  down-trodden  grass 
which  the  next  person  to  cross  the  field  is  likely  to 
follow.     Presently  the  grass  is  worn  away,  and  there- 
after every  one  follows  the  beaten  path. 

The  first  formation  of  a  nerve  course  is  not  strictly 
haphazard  as  in  the  case  of  the  wayfarer's  first  path 
across  the  meadow.  The  nervous  system  is  Determina- 
part  of  a  Hving  organism,  and  that  organism  tion  of 
can  itself  in  a  large  measure  determine  whether  ^®^®  p^*^®* 
a  movement  shall  be  repeated  or  not.  The  organism 
itself  largely  decides  which  pathway  shall  first  become 
estabhshed.  Nevertheless  it  is  true  that  when  paths  of 
nervous  activity  are  estabhshed,  they  tend  ever  after  to 
remain  and  be  used.  Every  time  an  act  is  performed 
there  is  a  deepening  of  the  nerve  rut.  The  two  important 
factors  in  habit  formation  are  that  nerve  currents  tend 
to  follow  those  paths  which  have  been  previously  estab- 
hshed, and  that  the  organism  itself  plays  a  governing 
part  in  first  choosing,  and  later  deciding,  what  paths  shall 
become  fixed. 

Eating,  walking,  talking,  and  all  important  actions  of 
everyday  hfe  are  habits  in  whole  or  in  part.     The  morn- 
ing toilet  is  a  habit.     You  wash,  strop  your 
razor,  shave,  brush  your  teeth,  and  comb  your  of^^S^t^^ 
hair  without  being  conscious  of  what  you  are 
doing.     When  an  action  becomes  a  habit,  it  seems   to 
dispense  wholly  with  conscious  guidance.     A  pianist  can 


i62  ECONOMICS  OF  EFFICIENCY 

play  familiar  airs  and  carry  on  a  conversation  at  the 
same  time.  A  banjoist  can  play  without  looking  at  the 
strings  and  talk  at  the  same  time.  We  may  not  be 
entirely  obKvious  of  our  muscular  activities  but  to  all 
appearances  we  are  entirely  preoccupied  with  other 
things,  and  still  are  able  to  carry  on  habitual  acts. 

Repetition  is  an  imperative  demand  in  habit  forma- 
tion. The  only  way  to  master  an  action  is  by  repeating 
it  at  regular  and  frequent  intervals.  Each 
req^^te^^  repetition  deepens  the  nerve  paths  already 
made  and  causes  travel  with  less  friction. 
The  conversion  of  action  into  habit  makes  other  demands 
than  repetition.  Knowing  how  to  perform  an  action, 
abiHty  to  do,  and  willingness  to  do,  are  essentials  in  habit 
formation.  The  mind  should  be  on  the  performance  of 
the  task,  and  the  repetition  should  be  identical.  No 
variations  should  be  allowed.  Again,  confidence  in  one's 
abihty  to  eventually  achieve  success  in  making  an  action 
a  habit  is  an  essential  prerequisite.  Failure  frequently 
follows,  or  mastery  is  unnecessarily  delayed,  as  a  result 
of  lack  of  confidence  in  one's  abihty  to  achieve  success. 
Paying  heed  to  the  foregoing  demands  makes  habit  for- 
mation comparatively  simple  and  rapid. 

As  a  result  of  habit,  many  acts  are  performed  auto- 
matically. A  machinist  does  not  stop  to  think  what  is 
Habits  re-  ^^^  ^^^^  movc  to  make,  but  it  is  made  with- 
Ueve  brain  out  any  conscious  attention.  When  a  pianist 
of  work.  jg  playing  the  piano,  the  finger  movements 
and  the  reading  of  notes  are  carried  on  with  a  minimum 
of  thought.  Habits  reheve  the  mind  from  paying  atten- 
tion to  the  details  of  successive  steps  of  an  act.  While 
the  performance  of  an  act  is  being  reduced  to  habit,  a 
person's  whole  attention  should  be  given  to  directing  its 
performance.  As  soon  as  habit  is  formed,  work  is  done 
automatically,  and  attention  may  be  turned  to  other 


HABITS  163 

things.  In  the  Bureau  of  Engraving  at  Washington,  I 
saw  a  young  lady  carry  on  a  conversation  and  count 
sheets  of  stamps  with  great  rapidity. 

Skill,  dexterity,  and  speed  in  the  performance  of  work 
are  based  on  habit.     Work  becomes  accurate  as  well  as 
fast  in  the  degree  to  which  we  are  able  to  Results  of 
reduce  its  performance  to  habit.     No  great  proper 
speed  is  possible  as  long  as  attention  must  be  ^^^'^^^  of 
given    to    each   succeeding   step   of   a   task.  ^°^  ' 
Speed  of  action  should  not  be  confused  with  hurried 
action.     Speed  resulting  from  habit  is  never  hurried,  and 
mistakes   and   inaccuracies   are   rarities,   whereas   they 
abound  in  hurried  action.     Speed,  precision,  and  accu- 
racy result  only  from  habit.     Business  men  usually  look 
upon  habit  as  detrimental  to  efhciency.     They  invaria- 
bly associate  habits  with  something  undesirable,   and 
regard  their  possession  as  a  handicap  to  good  work. 
Little  do  they  realize  that  the  very  basis  of  efficiency  is 
habit,  and  that  a  careful  study  of  habit  and  its  proper 
formation  are  absolutely  necessary  and  essential. 

In  the  formation  of  habits,  oftentimes  a  severe  test 
is  that  of  overcoming  the  sluggishness  and  the  inertia 
of  the  brain.     It  frequently  requires  a  hard  Difficulties 
struggle  to  apply  concentrated  thought,  and  inhabit 
regular  and  constant  application  until  habit  is  formation, 
formed.     Determination  and  perseverance  are  in  many 
cases  given   severe   tests.     Very  frequently  discourage- 
ment follows  the  first  few  repetitions,  and  failure  results. 
Every  one  should  bear  in  mind  the  old  saying,  ^'If  you 
don't  succeed  at  first,   try  again."     When  everything 
seems  hopeless,  further  repetition  will  soon  give  encour- 
agement.    The  task  gradually  becomes  easier,  and  even- 
tually precision,  accuracy,  and  speed  are  obtained.     One 
then  wonders  how  a  task  so  easy  to  accomplish  caused 
so  much  trouble  and  discouragement  at  the  beginning. 


i64  ECONOMICS  OF  EFFICIENCY 

Too  great  emphasis  cannot  be  placed  upon  the  neces- 
sity of  identical  repetition  of  movements  in  the  forma- 
importance  ^ion  of  habit.  Identical  repetition  not  only 
of  identical  deepens  the  nerve  paths  to  the  extent  that 
repetition,  enables  response  to  travel  with  less  friction 
along  the  well-marked  grooves,  but  it  guarantees,  when 
habit  is  formed,  no  deviations  from  the  established  move- 
ments in  the  habit.  When  movements  are  not  identical, 
other  nerve  paths  are  formed.  If  many  repetitions  of  the 
exceptions  occur,  their  nerve  paths  become  more  and 
more  indented  or  grooved.  So  when  the  habit  is  formed, 
in  place  of  one  well-grooved  path  for  the  response  to 
travel,  there  is  one  which  it  is  necessary  to  follow  to  get 
proper  performance,  and  one  or  more,  more  or  less  deeply 
indented,  which  it  may  follow.  These  exception  nerve 
routes  are  alert  in  their  efforts  to  direct  the  response  to 
The  except  their  courses,  and  to  divert  it  from  its  true 
tion  nerve  course.  The  exceptions  usually  put  in  their 
route.  appearance  at  the  very  time  when  the  worker 

is  most  anxious  that  they  should  not.  Their  appearance 
on  one  or  more  occasions  frequently  encroaches  upon 
the  worker's  reliability  and  faith  in  his  accurate  perform- 
ance of  a  task,  and  has  a  tendency  to  limit  his  speed. 
With  the  additional  strain  on  the  brain  from  watching 
for  the  exception,  more  fatigue  is  experienced,  and  fre- 
quently work  is  more  exhausting  with  less  speed  than  it 
is  with  greater  speed  and  perfect  repetition  of  a  habitual 
task.  Efficiency  with  its  demand  of  accuracy,  precision, 
and  speed  does  not  tolerate  any  exception  in  habit- 
formation,  and  repetition  should  be  accurate  and  identical. 
Efficiency  demands  industry  as  well  as  knowledge  and 

skill.  A  working  force,  even  if  it  be  skilled, 
efficiency  ^^*  c^nnot   be  efficient   unless   it  is  industrious. 

Industry  and  indolence  are  largely  matters 
of  habit.     Industry  is  the  fundamental  basis  of  skill  and 


HABITS  165 

dexterity,  and  without  it,  the  latter  are  of  Kttle  service. 
Boyhood  and  youth  are  the  ages  for  the  formation  of 
proper  habits  of  industry.  Fathers  and  mothers  httle 
realize  that  they  are  largely  to  blame  for  a  great  amount 
of  the  indolence  in  the  world.  If  they  would  take  more 
pains  to  teach  their  children  to  be  industrious  importance 
what  a  boon  it  would  be  to  industrial  society,  of  habits  of 
Youths  who  are  allowed  to  do  as  they  please  industry, 
soon  form  the  habit  of  loafing.  Work  becomes  distasteful, 
and  only  sHght  exercise  causes  discomfort.  Indolence  is 
established,  and  each  successive  year  sees  it  more  firmly 
rooted.  After  years  of  idleness,  the  habit  of  indolence 
is  so  firmly  established  that  it  is  impossible  to  break 
away,  and  as  a  result,  thousands  spend  their  Hves  in 
indolence.  What  a  blessing  it  would  be  to  society  in 
general,  and  to  industry  in  particular,  if  this  vast  indo- 
lence could  be  aboHshed  and  we  could  have  industry  in 
its  stead.  The  time  for  the  formation  of  habits  of  in- 
dustry is  youth,  and  great  care  should  be  exercised  to 
see  that  such  habits  are  then  formed.  With  habits  of 
industry  firmly  rooted,  skill,  dexterity  and  speed  are 
more  easily  attained.  It  cannot  be  too  strongly  em- 
phasized that  the  efficient  man  is  the  one  who  is  indus- 
trious as  well  as  possessing  knowledge  and  skill.  One  of 
the  factors  underlying  our  future  industrial  expansion, 
and  essential  in  our  struggle  for  the  world's  industrial 
supremacy,  is  efficiency,  and  one  of  the  great  bulwarks 
of  efficiency  is  habit  of  industry.  Fathers,  mothers,  and 
teachers  should  reahze  that  one  of  their  chief  duties  is  to 
instill  into  children  proper  habits  of  industry. 

Visit  a  plant  and  watch  the  movements  of  the  work- 
men, and  you  will  see  many  unnecessary  movements  in 
the  performance  of  every  task.  The  habits  of  the  aver- 
age workmen  are  not  such  as  enable  him  to  do  his  work 
in  the  most  economical  and  efficient  manner.     Most  men 


i66  ECONOMICS  OF  EFFICIENCY 

are  allowed  to  choose  their  own  movements  in  the  per- 
formance of  work.  Habits  are  formed  with  no  thought 
Formation  ^^  ^^  ^^^  attaining  of  efficiency.  Many  habits 
of  habit  in  cause  the  expenditure  of  much  unnecessary 
common  energy,  and  not  only  that,  but  they  entail  a 
prac  ce.  great  loss  of  time  in  performing  unnecessary 
movements.  I  once  watched  a  mason  at  work,  and 
wondered  why  he  struck  each  brick  at  least  two  or  three 
times,  when  frequently  it  was  not  needed.  On  inquiry, 
I  was  told  that  it  was  habit,  and  that  was  the  only  reason 
given.  The  time  and  the  energy  given  to  the  extra 
tappings,  if  saved,  would  have  enabled  him  to  lay  many 
more  bricks  in  a  day  without  an  extra  expenditure  of 
energy. 

It  is  only  necessary  to  visit  two  or  three  factories  to 
reaHze  the  vast  amount  of  time  and  energy  wasted  from 
Wastes  due  Using  unnecessary  movements  in  work.  How 
to  poor  much  more  efficient  would   a   man   become 

habits.  •£  ^Yiis  waste  were  eliminated,  and  the  energy 

saved  for  the  performance  of  more  efficient  work.  The 
blame  for  the  presence  of  the  many  unnecessary  move- 
ments in  the  performance  of  work  cannot  be  placed 
upon  the  worker  because  he  usually  does  the  best  he 
can  under  the  circumstances,  but  upon  the  employer  for 
not  taking  proper  care  and  pains  in  the  implanting 
of  proper  habits  for  the  performance  of  work.  The 
old  method  of  expecting  a  worker  to  observe  how 
work  is  done,  and  to  use  his  own  judgment  in  choosing 
movements,  and  repeating  these  until  habit  is  formed, 
should  give  way  to  the  demands  of  efficiency  where  the 
employer  chooses  the  best  method  for  the  performance 
of  work,  and  trains  employees  in  it,  until  habit  is 
formed. 

An  important  problem  in  business  is  the  elimination 
of  waste  in  its  many  varied  forms.     One  of  the  greatest 


HABITS  167 

wastes  is  that  of  misdirected  energy,  and  in  this  case, 
a  large  part  may  be  eliminated  through  the  formation  of 
proper  habits.     There  is  a  right  way  of  learn-  _,.   .     . 

i         ,  T  e  r  1  1  Elimination 

mg  the  performance  of  work  and  a  wrong,  of  wastes  of 
Two  workmen  may  obtain  the  same  results,  energy 
but  one  by  unnecessary  movements  and  round-  ^^^^^^ 
about  methods  may  take  not  only  much  longer, 
but  may  consume  much  more  energy,  than  the  other.     Fre- 
quently in  observing  two  men  perform  similar  work,  you 
would  declare  that  one  would  do  a  third  more  Examples 
than  the  other,  but  on  inquiry,  you  are  surprised  of  wastes  of 
to  find  that  the  larger  amount  of  work  is  per-  ®^®'gy- 
formed    by    the   latter.     The   movements   of   the   one 
are  much  faster  and  his  efforts  much  more  strenuous. 
Carefully  study  the  movements  of  the  two.     One  will 
take  three  movements  to  do  a  certain  part  of  the  work 
while  the  other  takes  two.     One,  in  short,  has  acquired 
as  a  habit  a  number  of  unnecessary  movements,  while 
the  other  has  not.     The  new  efficiency  movement  has 
turned  the  attention  of  employers  to  this  waste  and  to  its 
study  in  order  to  prevent  its  occurrence.     The  remedy 
lies  in  a  study  of  necessary  movements  for  the  perform- 
ance of  work,  ascertaining  those  best  adapted  to  the 
attainment  of  the  desired  result,  and  training  workers 
so  that  they  acquire  proper  habits  of  work. 

After  proper  movements  have  been  ascertained,  the 
next  essential  is  training.     Careful  training  is  one  of  the 
great  demands  of   efficiency.     The   workers  xheim- 
should  be  carefully  taught  in  the  exact  methods  portance 
and  movements  necessary,  and  care  should  be  ®^  traimng. 
taken  that  these  are  exactly  repeated  until  habits  are 
formed.     The  acquiring  of  standard  methods  and  move- 
ments is  of  little  use  unless   they   become   habits   of 
workers  in  doing  work.     This  demands  careful  train- 
ing, and  instruction  in  the   understanding  and  in  the 


i68  ECONOMICS  OF  EFFICIENCY 

use  of  the  standards.  Competent  instructors  should 
take  charge  of  the  workers  while  reducing  standard 
methods  and  movements  to  habits.  They  should  in- 
struct and  carefully  supervise  while  workers  are  learn- 
ing to  make  certain  that  only  standard  methods  and 
movements  are  used.  This  avoids  exceptions  creeping 
in,  and  insures  greater  efhciency  when  habits  are  formed. 
The  great  aim  is  to  train  men  so  efhciently  that  they 
form  the  habit  of  doing  the  right  thing  at  the  right 
time  without  stopping  to  think.  If  proper  standard 
methods  and  movements  are  ascertained,  and  workers 
are  trained  in  their  use,  much  of  the  waste  of  human 
energy  would  be  eliminated,  and  an  abundant  supply  of 
hitherto  wasted  energy  would  be  made  available  for 
more  productive  work. 

The  efficiency  of  the  skilled  trades  could  be  greatly  in- 
creased by  paying  attention  to  motion  study  and  train- 
How  to  ing.  Take,  for  example,  brick  laying.  An  ap- 
increase  prentice  is  supposed  to  watch  the  laying  of 
the  effi-         brick  and  learn  the  movements  necessary.     No 

ciency  of  .  ,  .  .       ,  .        . 

the  skiUed  attempt  IS  made  to  mstruct  or  assist  mm  m 
trades.  learning  the  proper  movements.     The  result 

is  that  habits  are  formed  and  include  many  unnecessary 
movements.  Mr.  Gilbreth  has  made  a  special  study  of 
brick  laying,  and  has  by  careful  observation  and  experi- 
mentation discovered  the  movements  necessary  to  get 
the  greatest  efficiency  in  the  work.  If  these  movements 
were  made  standard,  and  their  compulsory  use  enforced 
upon  all  apprentices  and  bricklayers,  it  would  greatly 
increase  the  efficiency  of  the  bricklayer,  and  would  neces- 
sarily bring  an  increase  in  wages.  If  the  same  were  done 
in  all  trades,  it  would  greatly  benefit  employees  and  em- 
ployers ahke.  Efficiency  demands  standardization  of 
methods  and  movements,  and  the  time  is  not  far  distant 
when  these  demands  will  be  fulfilled. 


HABITS  169 

Two  classes  of  workers  should  be  considered  in  training 
in  efficient  habit  formation;    first,  the  apprentice,  and 
secondly,  the  one  who  has  learned  his  trade,    ^ksses 
Each    should    receive    special    consideration,    considered 
What  would  be  satisfactory  with  the  former   inhabit 
may  prove  a  failure  with  the  latter.     With  the 
apprentice,  when  standard  methods  and  movements  have 
been  ascertained,  the  acquiring  of  them  is  simply  a  matter 
of  instruction  and  supervision.     Little  objec-   ^    rentice 
tion  is  usually  found  by  the  young  apprentice 
in  getting  him  to  follow  instructions.     No  factor  in  effi- 
ciency demands  more  careful  study  than  the  training  of 
apprentices  in  acquiring  efficient  habits,  and  yet  this  has 
been   woefully  neglected  in    the   past.     Em- 
ployers  should  be  made  to  reahze  that  effi-  -v^orker. 
ciency  depends  in  a  large  measure  upon  proper 
methods  of  doing  things,  and  when  this  is  accompHshed, 
they  will  devote  time  and  money  to  acquiring  proper 
methods  and  training  to  obtain  proper  habits.     Every- 
thing that  adds  to  profits  interests  employers,  yet  it  is 
only  recently  that  a  few  progressive  employers  are  realiz- 
ing that  proper  habits  add  to  profits  by  assuring  greater 
efficiency. 

A   manufacturer    employing   several    thousand    em- 
ployees once  remarked  that  standard  methods  and  move- 
ments in  doing  work  were  satisfactory  in  train-  ,^^ 
ing   new   apprentices,    but   absolute   failures  changes 
when  they  were  forced  on  employees  who  had  ^^®  ^o* 
formed  habits  of  doing  their  work,  and  that  ™^  ®* 
he  had  not  introduced  efficiency  methods  in  habit  forma- 
tion because  he  was  afraid  of  friction  on  the  part  of  the 
older  employees.     The  result  is  that  the  old  haphazard 
wasteful  methods  are  in  operation,  and  it  is  not  Hkely 
that  in  the  near  future  any  attempt  will  be  made  to 
ehminate  the  great  wastes  resulting  from  misdirected 


170  ECONOMICS  OF  EFFICIENCY 

energy.  The  greatest  opposition  to  new  standard 
methods  and  movements,  it  must  be  admitted,  comes  from 
Why  do  ^^^  employees.  Each  worker  follows  naturally 
employees  the  habit  groove  in  both  thought  and  action, 
oppose  The  nerve  paths  are  usually  deeply  grooved, 

c  anges  ^^^  ^-j^^  opposition  to  forming  new  nerve  paths 
is  deep  seated.  Change  of  habit  means  a  complete 
change  in  certain  parts  of  the  nervous  system.  One 
does  not  wonder  at  the  great  resistance  in  every  case  to 
change  of  any  kind.  No  new  habit  can  be  obtained  with- 
out a  hard  struggle,  and  demands  for  some  time  increased 
attention,  and  a  considerably  increased  outlay  of  mental 
and  physical  energy.  With  a  young  worker,  who  has 
recently  acquired  his  habits  of  doing  work,  habit  changes 
are  not  so  difhcult,  but  with  old  employees,  who  are 
slaves  to  their  deep  nerve  ruts,  a  radical  change  is  almost 
an  impossibility,  while  only  a  slight  change  means  a 
great  amount  of  extra  effort. 

Patience  and  diplomacy  are  demanded  in  every  case 
where  the  introduction  of  new  ways  of  doing  things  is 
■D^r,  v*^c      desired.     The  use  of  drastic  measures  in  mak- 

ReqUlSlteS  .  .  •11  1  >        r     ^^  mi 

for  the  in-  mg  changes  invariably  results  in  failure.  The 
troduction      ^j-gt  essential  is  the  cooperation  of  the  working 

c  anges.  f^j-^g^  ^^^  ^-^[s  demands  that  the  workers  be 
taken  into  confidence  by  employers.  Few  realize  this, 
and  they  wonder  why  they  fail  in  the  introduction  of 
changes.  The  importance  of  changes  in  habit  should  be 
made  clear,  and  proper  incentive  should  be  given  to  make 
the  changes.  The  one  great  incentive  with  every  wage 
earner  is  increase  in  pay.  It  should  be  emphasized  that 
the  increased  efficiency  which  will  come  from  the  changes 
will  not  demand  extra  effort  after  habits  have  been 
formed,  and  will  increase  wages. 

The  saving  of  energy  by  eliminating  unnecessary  move- 
ments will  result  in  increased  output  without  any  in- 


HABITS  171 

creased  effort  on  the  part  of  the  workers.     It  will  simply 
be  converting  the  energy  used  for  unproductive  purposes 
into  productive  results.     The  fact  that  this  Ejects  of 
is  not  for  the  purpose  of  exploitation,  or  dimin-  proper 
ishing  the  ef&ciency  of  the  workers,  but  for  habits  of 
increasing  their  efficiency  without  any  greater  ^°^ 
expenditure  of  energy  should  be  made  clear.     The  aver- 
age worker  is  opposed  to  change,  because  it  means  for  a 
time  paying  more  direct  attention  to  mastering  new 
methods,  and  because  he  believes  that  every  innovation 
or  change  is  for  the  benefit  of  the  employer,  at  the  expense 
of  the  employee.     Prejudices  and  fallacious  beliefs  such 
as  these  should  be  overcome  at  the  very  outset,  or  else 
proper  cooperation  will  be  lacking  and  failure  will  result. 

The  cooperation  of  the  laboring  force  having  been 
obtained,  the  chief  difficulty  is  over,  because  without  it, 
the  successful  introduction  of  new  habits  is  conversion 
impossible.     Standard  methods  of  work  ob-  of  new 
tained,  their  successful  introduction  demands  methods 
considerable  time,  patience,  and  perseverance.  *^*°   ^  ^*^' 
The  new  methods  must  be  mastered,  and  by  repetition 
converted  into  habits.     This  accomplished,  the  working 
force   through  increased  efficiency  and  wages  will  be 
better  satisfied  and  more  contented  under  the  new  con- 
ditions than  under  the  old.     With  proper  consideration 
of  employees,  clear  explanations  of  purposes  and  results 
of  changes,  proper  incentive  to  make  changes,  and  gradual 
introduction  with  considerate  and  patient  instructors,  no 
employer  will  have  much  trouble  in  changing  habits  of 
employees,  and  thereby  increasing  their  efficiency. 

Efficiency  demands  healthy  and  intellectual  workers. 
Health  is  largely  dependent  upon  the  forma-  proper 
tion  of  proper  habits  of  living.     Regular  eat-  habits  of 
ing,  proper  mastication  of  food,  cleanliness,  ^^^^s- 
regular  hours  of  rest,  and  wholesome  recreation  are  the 


172  ECONOMICS  OF  EFFICIENCY 

results  of  habit.  Parents,  in  training  their  children  in 
proper  habits  of  living,  have  a  duty  to  perform  to  industrial 
society.  A  person  accustomed  to  dirty  and  filthy  sur- 
roundings will  have  great  difficulty  in  acquiring  the  habit 
of  cleanliness.  Employers  frequently  have  great  diffi- 
culty in  getting  their  employees  to  Hve  amidst  proper 
sanitary  and  hygienic  surroundings.  If  once  the  habit 
of  proper  living  has  been  acquired,  they  express  the 
greatest  abhorrence  to  the  very  conditions  which  had 
taken  so  much  patience  to  break  them  away  from.  Em- 
ployers should  insist  on  the  acquiring  of  proper  habits  of 
living,  and  see  that  they  are  followed  by  their  workers. 

Many  acquire  early  the  habit  of  rapid  eating  and  the 
improper  mastication  of  food.  Many  form  habits  of 
Proper  Overeating,  which  lead  to  indigestion  and  ill- 

habits  of  health,  and  many  become  accustomed  to  eat- 
eatmg.  |j^g  sweets,  cakes,  and  pastry  instead  of  good 

wholesome  and  properly  cooked  food.  All  of  the  bad 
habits  of  eating  lead  eventually  to  ill  health,  low  vitality, 
and  inefficiency.  Efficiency  demands  careful  investiga- 
tion into  the  habits  of  living  of  employees,  and  the  cor- 
recting of  those  detrimental  to  health.  Nurses  and 
dietitians  to  visit  the  homes  of  employees,  and  to  instruct 
in  the  proper  manner  of  living  and  of  eating  are  essentials 
in  large  business  enterprises.  Lectures  on  hygiene,  care 
of  the  body,  and  proper  clothing  should  be  regularly 
given,  and  all  expenses  so  incurred  are  good  investment, 
because  the  increased  efficiency  of  the  working  force 
repays  manifold  every  dollar  so  spent.  Even  to-day,  the 
Training  in  ^.vcrage  busiucss  man  hesitates  about  interest- 
proper  ing  himself  in  the  lives  of  his  workers.  The 
habits  of  tjnie  is  not  far  distant  when  nurses  and  doctors 
^^°^'  will  be  regularly  employed  by  large  business 
enterprises,  and  not  the  exception,  as  it  is  to-day.  Train- 
ing in  proper  habits  of  living  is  as  essential  in   the 


HABITS  173 

management  of  an  enterprise  as  training  in  the  methods 
of  doing  work. 

Habits,  from  the  point  of  view  of  efficiency,  may  be 
classified  as  efficient  and  inefficient.     The  former  include 
those  which  assist  in  getting  the  best  possible 
results  out  of  a  given  expenditure  of  mental  habits  ^°^ 
and  physical  energy,  as  proper  habits  of  Hving, 
work,  and  industry.     The  latter  include  improper  habits 
of  work^  improper  modes  of  hving,  and  habits  of  intem- 
perance and  of  indolence  in  any  form.     These         . 
should  be  eliminated  if  the  goal  of  efficiency  is 
the  aim.     Employers  cannot  afford  to  remain  indifferent, 
and  trust  that  the  state  and  society  will  eliminate  or  rid 
industrial  society  of  these  cost-increasing  fac-  t    ^  •    + 
tors,  but  should  take  the  matter  into  their 
own  hands,  and  by  their  own  efforts  discover  and  remedy 
improper   habits  in  their  working  force.     As  soon  as 
employers  realize  that  the  decrease  in  costs  will  more 
than  repay  for  the  expense  of  such  action,  they  will  become 
active  in  studying  habits  in  order  to   eliminate   those 
which  are  not  conducive  to  efficiency. 

Formerly,  and  even  to-day,  business  men  associate 
habits  with  bad  habits,  and  look  upon  a  habit  as  some- 
thing undesirable  in  a  worker,  and  a  factor, 
if  present,  working  toward  inefficiency  and  loss.  ^^  h^Us!^ 
They  look  upon  all  habits  as  bad  and  unde- 
sirable, and  fail  to  see  that  good  habits  are  just  as  desir- 
able as  bad  are  not.     Habits  play  a  very  important  part 
in  the  life  of  every  individual,  and  their  study  Rgje  of 
is  a  much  neglected  factor  in  industrial  society,  habits  in 
It  is  true  that  the  efficient  man  is  marked  off  society, 
from  the  inefficient,  and  the  useful  from  the  useless  and 
vicious,  by  the  nature  of  their  habits.     Industry  and  indo- 
lence, efficiency  and  inefficiency,  good  and  bad  temper, 
virtue  and  vice,  are  in  the  last  analysis  largely  matters  of 


174  ECONOMICS  OF  EFFICIENCY 

habit.  Losing  one's  temper  or  retaining  self-control  is  a 
matter  of  habit.  Each  time  one  is  angered  by  a  trifle  it 
becomes  more  difficult  to  look  calmly  at  anything  un- 
pleasant, while  each  time  one  controls  himself,  it  becomes 
easier  to  retain  control  over  future  disagreeable 
of^Mbfr  happenings.  The  habit  of  self-control  is  an 
important  factor  in  business,  and  is  almost  a 
virtue  in  a  superintendent  or  boss,  because  if  he  loses  his 
temper  at  every  trifle,  it  reacts  upon  his  men  and  works 
toward  inefficiency.  Losing  one's  temper  increases 
chances  of  mistake  and  because  one  loses  partial  control 
over  his  actions  causes  many  accidents.  A  hasty  tem- 
per has  no  place  in  a  business  enterprise,  and  if  one  has 
that  weakness,  no  time  should  be  lost  in  gaining  self- 
control. 

The  drinking  of  alcoholic  liquors  as  well  as  the  using  of 
morphine  and  cocaine  are  habits,  and  the  excessive  use 
intemper-  of  2,ny  one  stamps  more  firmly  the  habit  and 
ance  a  makes  the  user  a  slave  to  it.     The  habitual 

habit.  ^ggj.  j^ggg  control  of  choice,  and  upon  invitation 

to  partake  cannot  refuse  to  indulge.  The  habitual  drinker 
and  the  drug  fiend  have  no  place  in  an  industrial  enter- 
prise, and  are  dereHcts  upon  industrial  society.  The 
absolute  prohibition  of  employees  to  bring  alcoholic 
drinks  in  any  form  into  a  place  of  business  should  be 
rigidly  enforced,  and  everything  should  be  done  to  dis- 
courage the  use  of  Hquor  or  drugs  at  anytime.  Extra 
precautions  should  be  taken  against  bringing  into  a  work- 
ing force  a  worker  addicted  to  the  use  of  liquor  or  drugs, 
and  if  a  habitual  user  is  found,  opportunity  should  be 
given  to  reform,  and  if  not  promptly  acted  upon,  dis- 
missal should  follow.  Efficiency  has  no  place  for  the 
alcohol  drinker  or  drug  user. 

The  smoking  or  the  chewing  of  tobacco  is  likewise  a 
habit.     The  excessive  use  of  tobacco  undermines  the 


HABITS  175 

nervous  system  and  unfits  a  man  for  efficient  work.     Its 
use  in  any  form  should  not  be  allowed  during  working 
hours,  and  punishment  should  be  severe  for  Effect  of 
any  infringement  of   the   rules.     Employers  the  tobacco 
should  discourage  the  use  of  tobacco  outside  ^^^^*- 
their  places  of  business,  as  no  good  arises  from  its  use 
and   it   works   toward    inefficiency   in   every  working 
force. 

The  drinking  of  tea  and  coffee  may  become  a  dangerous 
habit,  but  the  use  of  either  in  mild  form  will  never  do 
any   harm.     Injury   only   results   when    the 
habit  is  formed  of  using  strong  beverages.     I  2o?ee^habit. 
have  seen  workers  drink  tea  and  coffee  so 
strong  that  to  the  taste  it  was  almost  as  bitter  as  aloes. 
They  were  such  slaves  to  the  habit  that  they  would  far 
rather  go  without  their  breakfasts  than  without  their 
strong  cups  of  tea  or  coffee.     Such  a  habit 
gradually  undermines  the  nervous  system,  en- 
dangers proper  digestion,  and  lowers  vitaHty  in  general. 
Everything  which  impairs  health  affects  the  efficiency  of 
the  working  force.     It  is  advisable  for  employers  to  care- 
fully investigate  the  drinking  habits  of  their  employees 
because  they  affect  efficiency,  and  everything  which  im- 
pairs efficiency  is  of  vital  importance  to  every  employer. 
The  injuries  arising  from  the  drinking  of  strong  tea  or 
coffee  should  be  carefully  pointed  out,  and  every  dis- 
couragement given  to  their  use  except  in  mild  form. 

The  most  efficient  way  to  use  man's  energy  is  to  allow 
him  to  follow  habit  grooves  of  thought  and  of  action. 
It  is  very  necessary  to  see  that  correct  habits  y^^^  ^^ 
are  formed,  because  every  correct  habit  be-  habit  in 
comes  a  power  which  may  be  used  for  increas-  industrial 
ing  the  efficiency  of  a  worker.     Steadiness  of  ^°"^  ^' 
production   and   low   costs   come   from   proper   habits 
throughout  a  business  enterprise.     A  most  valued  asset 


176  ECONOMICS  OF  EFFICIENCY 

in  any  business  is  acquired  habits  of  doing  in  a  standard 
way,  promptly,  and  to  the  best  of  one's  ability,  the  work 
set  before  one.  The  aim  of  efhciency  is  to  obtain  the 
best  use  of  natural  resources  and  human  energy.  To 
accomplish  this,  careful  and  close  study  should  be  made 
of  every  factor  of  production  to  make  sure  that  it  per- 
forms its  function  with  the  least  waste  and  with  the 
greatest  efficiency.  No  one  factor  in  efhciency  is  of 
greater  importance  than  habit,  yet  it  is  one  which  in  the 
past  has  been  sorely  neglected.  Waste  of  energy  cannot 
be  eliminated  or  greatly  reduced  unless  special  care  is 
taken  to  obtain  standards  of  work,  and  by  careful  in- 
struction to  make  certain  that  they  become  habits.  The 
obtaining  of  standards  and  proper  training  to  acquire 
correct  habits  is  of  great  interest  to  the  employer,  and 
the  more  attention  paid  to  securing  this  goal,  the  greater 
will  be  the  efhciency  obtained. 

QUESTIONS 

1.  Why  is  habit  an  important  factor  in  efficiency?    What  is 
the  difference  between  habit  and  instinct  ? 

2.  What  is  the  process  of  habit  formation  ?    Why  is  repetition 
a  requisite  ? 

3.  In  what  way  do  habits  relieve  the  strain  of  work  ? 

4.  What  is  the  importance  of  identical  repetition?     What  is 
the  exception  nerve  route  ? 

5.  What  is  the  importance  of  habits  of  industry?    How  are 
they  acquired  ? 

6.  How  may  wastes  of  energy  be  eliminated  through  habit  ? 

7.  How  may  the  efficiency  of  the  skilled  trades  be  increased 
through  acquiring  the  proper  habits  of  work? 

8.  What  precautions  should  be  taken  in  the  introduction  of 
changes  for  the  formation  of  new  habits  ? 

9.  Why  do  employees  oppose  changes  ? 

10.  What  are  proper  habits  of  living  ?     Give  their  importance 
in  efficiency. 

11.  What  are  (a)  efficient  habits,  {b)  inefficient? 


HABITS  177 

12.  What  are  the  effects  of  (a)  the  drink  habit,  (b)  the  tobacco 
habit,  (c)  the  coffee  habit  ? 

13.  Why  is  it  the  most  efficient  way  to  allow  men  to  follow 
grooves  of  thought  and  action  ? 

14.  What  is  the  importance  of  training  in  habit  formation  ? 

15.  What  difficulties  are  encountered  in  the  formation  of  habits  ? 


REFERENCES 

Books 

D.  H.  Bergey,  "The  Principles  of  Hygiene,"  Chs.  IX,  X;  S.  S. 
Colvin,  "The  Learning  Process,"  Chs.  Ill,  IV;  Colvin  and  Bag- 
ley,  "Human  Behavior,"  Ch.  XI;  H.  L.  Gantt,  "Work,  Wages, 
and  Profits,"  Chs.  VII,  VIII;  J.  Hartness,  "The  Human  Factor 
in  Works  Management,"  Chs.  I,  II ;  H.  H.  Home,  "The  Psycho- 
logical Principle  of  Education,"  Ch.  XXVI;  W.  James,  "Princi- 
ples of  Psychology,"  Vol.  I,  Ch.  IV;  Kirkpatrick  and  Students, 
"A  Study  of  Habit,"  P.  Klapper,  "Principles  of  Educational 
Practice,"  Ch.  XXIV;  C.  L.  Morgan,  "Habit  and  Instinct," 
Ch.  VII;  H.  Miinsterberg,  "Psychology  and  Industrial  Effi- 
ciency," Ch.  XVIII;  G.  E.  Partridge,  "The  Psychology  of  In- 
temperance," Ch.  VI;  W.  B.  Pillsbury,  "Attention,"  Ch.  VII; 
W.  B.  Pillsbury,  "The  Essentials  of  Psychology,"  Ch.  Ill;  S.  H. 
Rowe,  "Habit-Formation,"  Chs.  IV-VII,  X,  XI;  W.  D.  Scott, 
"Increasing  Human  Efficiency  in  Business,"  Ch.  XIII;  G.  F. 
Stout,  "Analytical  Psychology,"  Ch.  IV ;  G.  M.  Stratton,  "Experi- 
mental Psychology,"  Ch.  XI;  E.  L.  Thorndike,  "Elements  of 
Psychology,"  pp.  199-229;  E.  L.  Thorndike,  "Educational  Psy- 
chology," Ch.  V;  Tolman  and  Guthrie,  "Hygiene  for  the  Worker," 
Chs.  II,  III,  VI. 

Articles 

B.  R.  Andrews,  "Habit,"  American  Journal  of  Psychology, 
Vol.  14,  pp.  121-149;  A.  W.  Benn,  "Habit  and  Progress,"  Mind, 
Vol.  II,  pp.  243-251 ;  H.  Black,  "The  Habit  of  Work,"  Current 
Literature,  Vol.  35,  pp.  724-727  ;  J.  Calder,  "The  Effect  of  Intel- 
lectual Habits,"  Iron  Age,  Vol.  91,  p.  496;  J.  Hartness,  "The 
Factor  of  Habit,"  The  Efficiency  Society,  Transactions,  Vol.  I, 
pp.  237-242  ;  O.  J.  Schuster,  "The  Importance  of  Habit  Forma- 
tion," Education,  Vol.  31,  pp.  73-81 ;  W.  D.  Scott,  "Habits  that 
Help,"  Everybody's,  Vol.  25,  pp.  412-417. 


CHAPTER  IX 
Fatigue 

One  factor  in  efficiency  which  the  average  employer 
overlooks  and  which  has  an  important  bearing  upon  effi- 
Fatigue  its  ^iency  is  fatigue.  Fatigue  is  a  phenomenon 
importance  which  is  daily  experienced  by  men,  women, 
in  business  ^j^^  children.  Several  psychologists  have 
neg  ec  e  .  ^q^q  excellent  work  in  the  study  of  this 
phenomenon,  and  several  exhaustive  studies  have 
appeared  in  America  and  Europe  dealing  with  the 
cause  and  effects  of  fatigue.  The  importance  of  the  study 
of  fatigue  to  the  business  man  has  received  httle  atten- 
tion. The  struggle  for  industrial  supremacy  has  brought 
home  to  every  business  man  the  necessity  and  impor- 
tance of  efficiency.  Efficiency  demands  a  careful  study 
of  fatigue,  a  factor  which  heretofore  has  been  considered 
of  little  importance  to  business  men,  and  only  suitable 
for  conjecture  and  experimentation  in  the  classroom. 

Work  is  performed  by  muscular  movement  which 
comes  from  muscular  contraction.  A  process  somewhat 
similar  to  oxidation  takes  place  within  the  mus- 
Sr^ue  ^^  ^^^  during  its  contraction,  and  waste  products  or 
toxic  impurities  are  thrown  off  into  the  blood. 
Every  movement  of  a  muscle  and  every  thought  cause  oxi- 
dation ,  and  dross  or  toxic  impurities  are  formed.  During  all 
work,  whether  physical  or  mental,  they  are  accumulating  in 
the  blood.  They  are  poisonous,  and  if  accumulated  to  a 
large  amount,  poison  an  individual  like  any  other  poison. 
Their  presence  at  first  is  not  detected,  because  they  do 

178 


FATIGUE  179 

not  exist  in  sufficient  amount  to  make  their  presence  felt. 
It  is  only  after  a  certain  accumulation  that  further 
addition  causes  injury.  When  this  period  has  been 
reached,  nature  gives  warning,  and  this  warning  is  known 
as  fatigue. 

Fatigue  is  nature's  signal  to  cease  the  accumulation  of 
waste  products  and  to  give  it  an  opportunity  to  eHmi- 
nate   what   has   been   accumulated.     If   this 
warning  is  not  heeded,  injurious  results  follow,   g^austion 
and  it  does  not  take  much  more  accumulation 
to   bring   exhaustion   or  overfatigue.     If   carried    still 
further,  death  results.     Men  and  animals  are  known  to 
have  dropped  dead  from  exhaustion.     They  are  poisoned 
by  their  own  waste  products  produced  during  periods 
of  activity.    The  muscles  almost  immediately  become 
rigid,  and  putrefaction  starts   in   a   very   short   time. 
Lucky  is  the  one  who  is  able  to  take  heed  of  the  warn- 
ing signal  of  fatigue,  and  not  overtax  his  own  capacity 
for  production. 

Work   is    performed   at    the    expense  of    nutrients 
stored  up  within  the  muscles,  and  of  oxygen  absorbed 
from  the  blood.     The  toxic  impurities  pro- 
duced during  work  circulate  in  the  blood  and  fati^e.° 
act  upon  the  nerve  endings  in  muscles,  and 
upon  the  gray  matter  of  the  brain.     They  diminish  the 
contractabihty  of  muscles  and  render  them  less  respon- 
sive to  nerve  stimuH.     They  poison  the  large  nerve  cells 
in  the  gray  matter  of  the  brain,  and  reduce  their  power  of 
remitting  voHtional  impulses.     When  the  waste  products 
accumulate  in  the  blood,  the  period  is  sooner  or  later 
reached  when  their  action  will  be  felt  in  the  sensation  of 
fatigue.     Not  only  is  the  whole  body  subject 
to  fatigue,  but  every  organ,  tissue,  and  cell  ^gYsg^en'. 
of  which  the  body  is  composed.     Fatigue  is 
thus  a  sensation,  the  result  of  work  carried  beyond  the 


i8o  ECONOMICS  OF  EFFICIENCY 

capabilities  of  an  organism.  It  manifests  itself  in  various 
ways.  Headache  is  the  usual  sensation  of  brain  fatigue, 
and  sleepiness  is  frequently  that  of  physical.  Exhaustion 
is  very  injurious,  but  fatigue  is  not.  Fatigue  may  readily 
be  done  away  with,  and  appears  to  be  a  protection  to  the 
human  body.  It  warns  a  person  when  it  is  time  to  rest, 
and  if  the  warning  is  not  heeded,  the  injurious  stage  of 
exhaustion  is  soon  reached.  It  is  practically  impossible 
to  tell  when  strain  begins.  The  consciousness  of  fatigue 
does  not  appear  with  the  first  casting-ofE  of  impurities, 
but  only  after  a  certain  accumulation  has  been  reached. 
A  person  does  not  perceive  the  on-coming  of  fatigue, 
and  only  experiences  the  sensation  when  it  has  reached  a 
certain  degree  of  intensity. 

There  is  a  limit  to  a  man's  power  of  doing  work,  and 
this  varies  with  different  people.  It  depends  upon  train- 
Power  of  ^^S'  occupation,  environment,  and  the  consti- 
work  varies  tution  of  the  individual.  Some  people  tire 
with  people,  j^ore  easily  than  others.  People  with  weak 
nervous  systems  easily  become  exhausted  and  recuperate 
slowly.  Different  persons  vary  in  their  power  of  resist- 
ance to  the  action  of  the  toxic  impurities  of  work,  and  in 
the  rapidity  with  which  their  bodies  cast  the  impurities  off. 

There  is  nevertheless  a  certain  amount  of  re- 
^?cr^^         serve  force  which  allows  our  muscles  to  be 

overtaxed  without  injurious  consequences. 
If  the  work  is  prolonged  so  that  the  reserve  force  is 
consumed,  precautions  should  be  taken  to  make  certain 
that  there  is  sufficient  recuperation  to  restore  the  used 
reserve  force.     Serious  injuries  arise  when  reserve  force 

is  encroached  upon,  and  complete  recupera- 

exSnt*°  **^     ^^^^  ^^^^  ^^^  ^^^^  place.     There  is  a  limit  to 
the  reserve,  and  when  it  is  consumed,  exhaus- 
tion follows.     When  the  reserve  force  is  approaching 
final  consumption,  irritation,  nervousness,  and  impaired 


FATIGUE  i8i 

vitaKty  are  found.     These  impair  the  efficiency  of  the 
worker,  and  make  him  a  fit  subject  for  all  kinds  of  diseases. 

The  accumulation  of  toxic  impurities  without  proper 
elimination  lowers  the  general  health  of  working  people. 
It  increases  the  efforts  necessary  to  perform  Effects  of 
work.  The  lowering  of  a  person's  vitality  toxic  im- 
makes  him  susceptible  to  all  kinds  of  diseases.  P^i^^es. 
A  greater  injury  results  from  work  done  by  fatigued 
muscles  than  from  harder  labor  done  before  the  worker 
is  tired.  Thousands  of  workmen  are  compelled  to  work 
while  fatigued.  Productivity  continues,  but  at  the  ex- 
pense of  human  health.  One  of  the  greatest  economic 
wastes  is  the  consuming  of  an  abnormal  amount  of  energy 
by  the  thousands  who  are  compelled  to  work  with  fa- 
tigued bodies.  Efficiency  demands  that  work  shall  not 
be  performed  by  tired  and  fatigued  muscles  and 
brains.  The  management,  to  get  the  greatest  efficiency, 
should  pay  particular  attention  to  the  question  of  fatigue, 
and  if  it  were  properly  studied,  working  conditions  would 
be  greatly  improved  to  the  advantage,  profit,  and  benefit 
of  employer  and  employee. 

It  is  generally  recognized  that  with  work  which  re- 
quires close   thinking  and  close  attention,   there  is  a 
period,  varying  with  the  individual  but  fairly  Effect  of 
definite     throughout,     when     concentration,  fatigue  on 
thought,  and  attention  may  be  maintained,  *^®^^^°' 
but  when  the  limit  is  reached  there  must  be  relaxation, 
perhaps  only  momentary,   or  the  productive  faculties 
decrease  rapidly  in  efficiency.     All  work  requires  more 
or  less  thought  and  attention.     With  the  increase  of  the 
intensity  of  thought  and  attention,  the  casting  off  of  toxic 
impurities  increases  at  a  rapid  rate.     After  nature  gives 
her  signal  through  the  sensation  of  fatigue,  sensibihty  is 
gradually  blunted  and  attention  flags.     It  is  impossible 
for  a  fatigued  man  to  give  the  close  attention  which  he 


i82  ECONOMICS  OF  EFFICIENCY 

gives  when  he  is  fresh.  The  flagging  of  attention  di- 
minishes precision  of  movements,  and  is  one  of  the  great 
causes  of  accidents.  Nervousness  and  irritabiHty  are 
consequences  of  a  fatigued  mind,  and  their  presence  pre- 
vents efficient  work. 

Fatigue  has  a  baneful  effect  upon  memory,  and  if 

activity  is  continued,  it  will  not  only  greatly  weaken  its 

power  but  almost  destroy  it.     Tired  persons 

Fatigue  and    Qf ^gj^  wonder  why  it  is  impossible  for  them  to 

memory.  .        -^  ^ . 

remember  tmngs,  not  knowmg  that  the  powers 
of  memory  have  been  benumbed  by  poisonous  waste 
products.  The  overworking  of  children  causes  an  accu- 
mulation of  impurities  which  weakens  memory  and  pre- 
vents intellectual  development.  Stupidity  in  working 
children  is  usually  due  to  the  baneful  influence  of 
toxic  impurities.     Efficiency  demands  intelligent  workers, 

and  this  in  turn  demands  proper  intellectual 
stupidity  in  development  of  young  boys.  One  of  the 
many  greatest  curses  of  fatigue  comes  from   cast- 

children,  -j^g  -j^^Q  ^Yie  great  industrial  system  unde- 
veloped and  stupid  workers.  This  should  be  remedied 
by  compulsory  training,  and  the  prevention  of  overwork 
of  boys  during  years  of  growth  and  development. 

The  body  purges  itself  of  the  accumulated  toxic  im- 
purities during  repose.     They  are  normally  burned  up 

by  oxygen  brought  from  the  blood,  excreted 
toxic  im^-  by  the  kidneys,  destroyed  by  the  liver,  and 
purities  cast  of!  from  the  body  through  the  lungs, 
"sed^^  f  -^^^^  should  eliminate  the  sensation  of  fatigue, 
^°  ^  ° '  and  the  accumulated  toxic  impurities  should 
be  cast  off.  The  body  is  repaired  during  rest  as  long 
as  activity  is  continued  within  psychological  limits,  or  as 
long  as  it  is  balanced  by  rest.  An  important  factor  in 
efficiency  is  the  taking  of  precautions  to  make  certain 
that  recovery  through  rest  is  complete.     The  efficient 


FATIGUE  183 

cycle  should  be,  work  to  the  period  of  sensation  of  fa- 
tigue, and  sufficient  rest  to  repair  the  body  of  its  losses. 
Work  is  often  carried  beyond  the  warning 
signal,  and  it  becomes  difficult  to  cast  off,  Jy^Jg^®"^''* 
through  the  repose  given,  the  accumulated 
impurities.  This  is  injurious  to  health,  and  the  over- 
taxed worker  becomes  susceptible  to  diseases  of  all 
kinds,  and  his  efficiency  is  impeded  by  nervousness, 
irritability,  loss  of  memory,  and  flagging  attention. 
Efficiency  demands  that  the  daily  average  of  expended 
energy  should  be  evenly  balanced  by  fresh  strength  and 
recuperation. 

Closely  related  to  the  repairing  of  the  losses  of  the 
body  through  physical  and  mental  activities  is  sleep. 
Sleep  is  the   best-known   phenomenon   of    life.      Sleep 
makes   rest   more   complete,    allows    greater 
and  more  complete  ehmination  of  poisonous  ^j^^*^***^ 
impurities,  and  assists  the  restoration  of  the 
tissues  necessary  for  future  activity.    Overfatigue  with  its 
accompanying  nervousness  and  irritability  is  inimical  to 
sleep.     It  causes  sleeplessness  and  a  further 
accumulation  rather  than  ehmination  of  waste  and^eep. 
products.     A  good  sound  sleep  is  one  of  the 
blessings  of  humanity,  and  fortunate  is  he  who  realizes 
its  necessity,  and   does  not  impair   his   efficiency   by 
encroaching  upon  his  proper  hours  of  rest  and  sleep. 

Equally  difficult  with  the  question  as  to  what  extent 
work  may  be  carried  before  it  is  injurious  is  the  problem 
of  how  much  sleep  is  required.     Some  people  How  much 
possess    greater    recuperative    powers    than  sleep  is 
others  and  impurities  are  more  quickly  cast  ^®<^®^^^^y- 
off.     Six  hours  of  sleep  with  them  give  the  same  recu- 
peration as  eight  with  others.     Psychologists  agree  that 
for  the  average  man,  eight  hours  of  sleep  are  sufficient 
to  cast  off  the  accumulated  wastes  of  the  preceding  day. 


i84  ECONOMICS  OF  EFFICIENCY 

Effective  sleep  should  be  dreamless,  because  when  a 
person  dreams  it  means  so  much  hindrance  to  the  eHmi- 
nation  of  poisonous  wastes.  One  of  the  greatest  requi- 
sites of  effective  sleep  is  a  bountiful  supply  of  fresh  air 
during  sleep.  Efhciency  demands  proper  sleeping  quar- 
ters and  proper  ventilation,  so  as  to  assure  the  greatest 
possible  destruction  of  waste  products,  and  the  greatest 
possible  building  up  of  new  tissues. 

Employers  are  commencing  to  realize  that  it  is  to 
their  interest  to  see  that  their  employees  protect  them- 
Proper  selves  by  taking  proper  sleep  and  taking  it 

habits  of  Under  proper  conditions.  Strictness  regarding 
sleep  and  regular  sleeping  hours  is  an  absolute  necessity 
if  the  greatest  efhciency  on  the  part  of  the 
working  force  is  to  be  attained.  Nurses  should  visit  the 
homes  of  employees  in  order  to  see  that  all  precautions 
are  taken  for  an  abundant  supply  of  fresh  air  during  sleep. 
Sleeping  in  close  quarters  retards  the  process  of  eHmi- 
nation  of  waste  products,  and  defeats  the  purpose  and 
the  object  of  sleep.  Precautions  taken  to  assure  proper 
rest  increase  the  efficiency  of  the  working  force,  and  help 
the  employee  in  protecting  his  health,  and  in  conserving 
his  strength  and  vitality. 

During  work,  the  process  of  elimination  and  destruc- 
tion of  the  toxic  impurities  is  going  on,  but  their  produc- 
EvUs  of  im-  ^^^  ^^  greater  than  their  destruction.  Work- 
proper  ing  with  proper  sanitary  conditions,  proper 
working  temperature,  good  ventilation,  and  an  abun- 
dant supply  of  pure  air  increases  the  destruction 
of  toxic  impurities.  Dust,  odors,  high  temperature,  and 
high  humidity  affect  the  working  power  of  the  laborer, 
through  consuming  more  energy  in  the  performance  of 
his  work,  and  loading  the  blood  with  an  increased  burden 
of  impurities. 

One  of  the  chief  antidotes  to  fatigue  is  nourishment. 


FATIGUE  i8s 

Fatigue  does  not  always  or  necessarily  depend  upon  the 
amount  of  work  done.  A  good  deal  depends  upon  the 
state  of  the  body.  No  general  rules  can  be  importance 
laid  down  which  apply  to  all  people  and  to  all  of  food 
kinds  of  work.  All  circumstances  which  ham-  and  good 
per  work  in  any  way,  as  ill-health  or  pain,  have 
the  effect  of  increasing  the  production  of  toxic  impurities. 
The  muscles  may  for  a  time  continue  to  perform  some 
work,  but  they  soon  give  out.  Efficient  work  demands  a 
healthful  body  and  a  peaceful  mind.  Ill-health  of  any 
kind  increases  the  energy  needed  for  work  and  hastens 
the  accumulation  of  toxic  impurities.  One  of  the  great 
essentials  for  health  is  regular  and  proper  nourishment. 
This  demands  a  careful  selection  of  articles  of  food  and 
their  proper  cooking.  Half-cooked  foods  cause  indiges- 
tion, a  common  ill,  and  the  cause  of  much  unnecessary 
fatigue.  It  is  a  business  proposition  to  see  that  em- 
ployees get  nourishing  food,  and  to  have  it  properly 
cooked.  Some  employers  give  their  employees  free 
lunches  or  lunches  at  cost.  Little  attention  has  been 
given  to  instructing  the  wives  of  employees  in  the  selec- 
tion or  in  the  cooking  of  food.  The  time  is  not  far 
distant  when  employers  will  realize  that  it  pays  to  send 
domestic  science  teachers  to  the  homes  of  their  employees 
to  teach  wives  how  to  choose  the  best  food,  and  how  to 
cook  it. 

The  human  body  demands  relaxation  as  well  as  rest 
to  repair  the  wastes  of  work.     Play,  amusement,  and 
reading  are  the  chief  agencies  for  mental  re-  Relaxation, 
laxation.     Athletic  sports  should  be  encour-  its  place  in 
aged  by  employers.     The  benefit  obtained  by  efficiency, 
employees  from  the  mental  relaxation  during  games  of 
ball  or  tennis  fully  repays  their  cost  to  employers.     In- 
door games  of  all  kinds  furnish  wholesome  amusement 
and  recreation  for  the  fatigued  brain.   Efficiency  demands 


1 86  ECONOMICS   OF  EFFICIENCY 

healthy  sport  and  wholesome  amusement.  It  is  profit- 
able to  employers  to  furnish  and  equip  athletic  fields, 
indoor  g\^mnasiums,  and  amusement  halls.  A  hall  for 
dancing,  singing,  and  music  during  lunch  hours  and  after 
work  is  a  pa}TQg  investment  in  a  large  enterprise.  Many 
employers  find  it  profitable  to  have  a  circulating  Hbrary 
■\;\dth  good  books  and  magazines.  The  furnishing  of  whole- 
some recreation  takes  away  the  temptation  to  seek  un- 
wholesome centers.  JMany  a  good  worker  has  had  his 
efficiency  impaired  and  oftentimes  ruined  by  being  in- 
duced to  take  the  fatal  step  in  seeking  recreation  to 
satisfy  the  cra\dngs  of  a  fatigued  brain.  Employers  are 
reahzing  that  wholesome  recreation  is  part  of  the  worker's 
daily  Hfe,  and  that  efficiency  is  increased  by  pro\dding 
various  forms  of  good  recreation. 

A  difficult  problem  to  decide  is  how  much  food, 
recreation,  and  rest  are  required  for  healthy  recupera- 
tion. This  is  quite  difi'erent  from  w^hat  we 
f^tue*^^*°  think  we  require.  Sensations  are  misleading, 
and  it  is  not  difficult  to  acquire  habits  which 
are  quite  contrary  to  nature's  demands.  The  amount  of 
food  needed  to  keep  our  bodies  healthy  probably  differs 
with  each  individual,  and  at  present  is  not  accurately 
kno^m.  The  acquiring  of  the  habit  to  eat  proper  food, 
properly  cooked,  and  slowly,  and  to  Kmit  eating  to  the 
point  of  satiety,  is  a  very  important  factor  in  the  health 
of  every  workman.  The  amount  of  rest  needed  for  the 
average  man  follows  very  closely  the  old  adage,  ''Eight 
hours  work,  eight  hours  play,  and  eight  hours  sleep." 
Food,  rest,  recreation,  and  sleep  are  the  eft'ective  anti- 
dotes to  fatigue.  A  careful  observ^ance  of  each  is  the 
demand  made  by  efficiency,  and  it  is  to  the  interest  of 
employers  and  employees  to  see  that  a  proper  amount  of 
each  is  obtainable. 

Efficiency  is  an  enemy  of  alcohol  and  of  all  stimulants. 


FATIGUE  187 

The  efficiency  movement  puts  a  ban  on  the  use  of  all 
alcoholic  drinks,  and  is  an  important  factor  working  for 
temperance.     Stimulants  are  Uke  a  whip  in  Effects  of 
that  they  urge  on  the  muscles,  and  cause  more  alcohol  on 
rapid  contraction.     They  do  not  bring  a  new  workers, 
supply  of  energy  into  the  system,  but  use  the  reserve 
force.     Liquor  may  drive  away  temporarily  the  sensa- 
tions of  fatigue,  but  in  the  end  it  is  a  greater  drain  on 
the  reserv^e  force,  and  leaves  the  worker  weaker.     The 
extra  drain  resulting  from  the  use  of  stimulants  demands 
longer  rest  periods  for  recuperation ;  when  they  are  not 
obtained,   impurities  accumulate,   and   sooner  or  later 
cause  a  breaking  down  in  health.     If  toxic  impurities  are 
not  normally  ehminated,  they  place  the  workman  in  an 
abnormal  frame  of  mind.      He  seeks  to  deaden  the  sen- 
sations of  fatigue  by  alcohol,  tobacco,  exciting  amuse- 
ments, or  excesses  of  any  kind.     Liquor  acts  i^temper- 
upon  the  muscles  and  the  nerves,  causing  un-  ance  comes 
certain  muscular  control,  and  frequently  leads  fro^n  over- 
directly   to   accident   and   injury.     The   em-    ^*^^®- 
ployer  who  is  seeking  efficiency  in  his  working  force 
should  take  extra  precautions  against  hiring  men  ad- 
dicted to  the  use  of  alcohoHc  drinks.     Their  use  outside 
of  working  hours,  if  in  any  quantity,  has  an  effect  upon 
the  worker  the  following  day.     Alcohol  and  stimulants 
of  all  kinds  are  factors  working  towards  inefficiency,  and 
if  an  efficient  force  is  the  aim,  their  use  should  be  strictly 
forbidden. 

Pauses  and  rest  periods  are  in  many  kinds  of  work 
great  conservers  of  energy.     They  allow  the  blood  to 
renew  oxygen,  and  to  partially  ehminate  the  j^^^^ 
wastes  of  work.     A  few  minutes  rest  allows  a  periods, 
certain  amount  of  recuperation.     The  strength  when 
of  muscles  under  intermittent  work  may  be 
ahnost  double  that  under  continuous  work.     Pauses  are 


i88  [ECONOMICS^  OF  EFFICIENCY 

absolutely  necessary  in  the  case  of  work  requiring  con- 
siderable thought,  close  attention,  or  strenuous  muscular 
activity.  If  they  are  not  given,  the  sensation  of  fatigue 
comes  early,  and  continuous  work  uses  the  reserve  force 
and  taxes  the  body.  The  additional  drain  is  not  repaired 
overnight,  and  health  is  soon  impaired.  Employers  can- 
not afford  to  have  their  employees'  strength  overtaxed 
or  their  health  impaired.  They  should  pay  close  atten- 
tion to  all  kinds  of  work,  and  where  more  than  ordinary 
attention,  thought,  and  strength  are  required,  should  give 
proper  rest  periods  so  that  their  employees  are  not  over- 
taxed, and  their  strength,  health,  and  efficiency  impaired. 

The  workman  at  the  beginning  of  the  day  is  cautious 
and  attentive.  He  avoids  danger  because  his  attention 
Fatigued  ^^  alert.  If  work  continues  after  nature's 
workers  Warning  in  the  sensation  of  fatigue,  it  decreases 
^^<^  sensibihty,  diminishes  attention,  and  lessens 

precision  of  movement.  Where  before  alert- 
ness avoided  accident,  now  lack  of  attention  and  of  pre- 
cision in  movements  causes  a  misstep  or  a  slight  devia- 
tion in  movement,  bringing  hand,  foot,  or  body  in  con- 
tact with  moving  machinery,  and  accident  follows.  The 
number  of  accidents  increases  with  great  rapidity  as 
fatigue  and  weariness  of  workmen  increase.  There  is  an 
immediate  relation  between  fatigue  and  industrial  acci- 
dents. Experts  have  proven  that  the  greatest  number 
of  accidents  occur  between  ten  and  eleven  in  the  morn- 
ing and  three  and  four  in  the  afternoon.  The  losses  due 
to  accidents  caused  directly  by  fatigue  amount  to  milHons 
of  dollars  every  year. 

Numerous  factors  besides  work  have  an  important 
Effects  of  bearing  upon  fatigue.  Dirt  and  dust  have  a 
dirt,  dust,  depressing  effect  upon  vitality  and  lessen  re- 
and  noise,  sistance  to  impurities.  Efficiency  demands 
cleanliness  and  freedom  from  dust  in  factory  and  plant. 


FATIGUE  189 

Noise  of  all  kinds  has  its  influence  upon  fatigue.  The 
roaring  of  machinery  has  a  great  influence  upon  atten- 
tion. It  necessitates  a  greater  exertion  to  maintain 
attention,  and  is  an  extra  strain  upon  the  muscular 
and  nervous  systems.  Every  precaution  should  be 
taken  to  lessen  the  roar  of  machinery.  Where  there 
are  constant  and  loud  noises,  and  close  attention  is 
required,  frequent  rest  periods  should  be  given,  or  the 
vitaHty,  health,  and  efficiency  of  the  operatives  will 
soon  be  impaired. 

Workmen,  even  if  properly  nourished,  cannot  produce 
beyond  a  certain  limit  without  injury.     Capacity  for 
work   varies   with    different   individuals.     If  gpeg^jj^g 
work  is  carried  beyond  a  certain  point,  the  frequently 
work  is  gained  at  the  expense  of  the  worker's  ^^  economic 
muscular  and  nervous  systems.     Speeding,  in  ^*^*®- 
the  majority  of  cases,  is  an  economic  waste.     It  causes 
a  temporary  increase  in  productivity  by  an  extra  drain 
upon  the  human  system.     If  sufficient  rest  is 
not  given  to  recuperate,  it  undermines  the  ff[;edfng^ 
human  system  and  impairs  the  efficiency  of  the 
workers.     Speeding  is  one  of  the  common  evils  of  piece- 
work.     If   piece-work    is   carried   beyond   the   normal 
capacity  of  the  worker,  it  represents  an  economic  waste 
in  curtailing  in  the  long  run  the  productivity  and  the 
efficiency  of  the  worker.     More  sickness  and  low  vitality 
are  found  among  piece-work  tailors  than  among  any 
other    classes    of    workers.     The    greatest    precautions 
should  be  taken  to  see  that  workers  do  not  work  beyond 
their  physical  and  mental  capacities,  which  will  even- 
tually impair  their  efficiency  through  undermining  their 
health.     Speeding   and   piece-work   are  two  causes  of 
economic  waste,  and  the  extra  productivity  gained  at 
the  expense  of  human  health  is  dearly  paid  for. 

Good  work  can  never  be  performed  by  tired  brain  or 


igo  ECONOMICS  OF  EFFICIENCY 

fatigued  muscles.  The  amount  and  the  quality  of  the 
work  are  greater  when  fatigue  has  not  been 
woS!^  °  reached.  If  a  worker  is  tired,  and  it  is  neces- 
sary to  use  more  effort  to  complete  a  task,  he 
completes  his  work  only  by  using  a  certain  amount  of 
his  reserve  force  and  by  making  additional  demands 
upon  his  nervous  system.  Work  in  itself  is  a  blessing. 
Work,  while  physiologically  making  for  health,  may,  if 
pushed  too  far,  so  as  to  induce  overfatigue,  ultimately 
unfit  a  worker  for  his  daily  task.  Work  becomes  injuri- 
ous and  dangerous  when  a  normal  amount  of  rest  does 
not  eliminate  the  impurities  accumulated  during  work. 
Instead  of  the  daily  cycle  of  accumulation  and  eHmi- 
nation  of  the  poisonous  wastes,  there  is  a  gradual  ac- 
cumulation leading  to  a  progressive  impairing  of  health. 
What  should  be  the  length  of  the  working  day  is  a 
serious  problem  to-day.  Maximum  efficiency  comes 
The  length  with  the  adjustment  of  the  work  so  that  it  fits 
of  the  work-  the  capacity  of  the  workmen.  How  many 
mg  day.  hours  can  a  man  work  without  impairing  his 
efficiency  is  the  question  which  should  be  solved  in  order 
that  the  greatest  efficiency  may  be  attained.  The 
decision  should  be  made  after  a  careful  study  of  work 
to  discover  what  length  of  working  day  accumulates 
impurities  that  can  be  eliminated  by  a  night's  rest,  sleep, 
and  repose.  Again,  the  decision  as  to  whether 
de^cide!  ^  ^^^  should  work  eight,  nine,  or  ten  hours  per 
day  should  depend  upon  the  character,  and  the 
intensity  of  the  work,  and  the  surroundings  while  at  work. 
What  energy,  whether  muscular,  mental,  or  nervous,  is 
necessary  to  perform  the  work  is  the  important  question. 
Six  hours  with  some  kinds  of  work  are  more  exacting 
than  nine  or  ten  with  others.  Where  work  is  intense 
and  carried  on  amidst  noisy  surroundings,  or  where  it 
requires    concentrated    thought    or    strong    muscular 


FATIGUE  191 

energy,  the  maximum  time  should  not  be  greater  than 
eight  hours.  Where  men  are  compelled  to  work  longer, 
the  additional  product  is  obtained  at  the  cost  of  impaired 
health,  and  represents  a  loss  rather  than  a  profit.  Where 
work  is  not  difficult  and  no  great  strain  is  necessary,  the 
length  of  the  day  may  be  increased  by  another  hour 
without  any  injury  to  health  or  efficiency.  In  many 
cases,  not  only  should  eight  hours  be  the  maximum  limit, 
but  there  should  be  frequent  pauses  during  the  working 
day.  An  economical  period  of  work  gets  all  the  advan- 
tages of  continued  work  without  injurious  fatigue. 

The  power  of  resistance  to  the  toxic  impurities  may 
be  increased  by  training.     Training  is  the  development 
of  skill,  and  of  the  power  of  resistance  to  the  importance 
action  of  the  toxic  impurities  of  work.     As  re-  of  training 
gards  the  latter  case,  it  acts  in  much  the  same  j^  resisting 
way  as  increasing  the  tolerance  of  a  poisonous    ^  ^^^' 
drug  by  administration  of  successively  increasing  doses 
of  it.     Training  increases  efficiency  not  only  by   the 
acquiring  of  dexterity,  but  also  by  increasing  the  power 
of   resistance   to   toxic   impurities.     William   James,  in 
his  essay  on  ^'The  Energies  of  Man,"  says,  ''We  live 
subject  to  arrest  by  degrees  of  fatigue  which  we  have 
come  only  from  habit  to  obey.     Most  of  us  may  learn 
to  push  the  barriers  further  off  and  to  live  in  perfect 
comfort  on  much  higher  levels  of  power."     It  is  hard, 
in  many  cases,  to  distinguish  between  real  and 
false  fatigue,  and  to  know  when  real  fatigue  fJse  fatigue, 
has   been   reached.     The   easy   surrender   to 
fatigue  may  be  easily  acquired  as  a  habit,  and  when  it 
is,  it  is  difficult  to  change.     Many  people  who  have 
little  resistance  to  the  toxic  impurities  of  work  may 
account  for  it  by  a  surrender  to  habit.     Such  a  habit 
prevents  men  from  working  to  their  proper  efficiency, 
and  if  acquired,  should  be  altered  by  a  course  of  training. 


192  ECONOMICS  OF  EFFICIENCY 

Progress  and  development  depend  upon  work.     The 

casting  off  of   toxic  impurities  is  unavoidable  if  one 

works.     If  a  worker  becomes  fatigued  before 

sSr^fatoe  ^^^  ^^^  ^^  ^^^  ^^y?  ^^  works  with  impaired 
energy.  If  he  is  compelled  to  do  things  in 
connection  with  his  work  that  unnecessarily  tire  him, 
the  employer  loses  thereby,  and  loses  in  proportion  as 
the  condition  is  remediable.  It  stands  to  reason  that 
any  means  which  tend  to  conserve  a  worker's  strength 
and  to  postpone  fatigue,  give  increased  productive  re- 
sults. There  is  no  reason  why  energy  should  be  wasted 
in  tiring  the  muscles  by  unnecessary  work  when  that 
energy  saved  could  be  used  to  more  productive  advantage. 
CHmbing  stairs  is  very  tiring  for  women  and  to  a  less 
degree  for  men.  A  woman  after  climbing  several  flights 
c„  •«„  of  stairs  starts  work  with  a  greater  accumula- 

Saving  .  ..  ••Ill 

energy  for      tion  of  toxic  impurities  than  would  result  from 
productive      two  or  three  hours  of  regular  work.     This 

handicap  is  unnecessary  and  wasteful.  There 
is  no  reason  why  this  energy  should  be  consumed  in  un- 
necessary work  when  it  may  be  conserved  to  give  more 
efficient  work.  An  elevator  pays  for  itself  several  times 
a  year  by  increasing  the  efficiency  of  workers  through 
saving  the  unnecessary  expenditure  of  energy  in  climb- 
ing stairs.  In  some  plants  it  is  necessary  for  workers 
to  go  several  times  a  day  from  one  floor  to  another,  and 
they  are  usually  compelled  to  climb  stairs.  This  causes 
a  great  expenditure  of  unnecessary  energy  which  may 
be  easily  conserved. 

Many  operations  are  of  a  nature  that  an  employee 
may  sit  as  well  as  stand.     There  are  few  that  do  not 

allow  the  worker  to  sit  at  intervals  if  only  for  a 
sitting^  °        ^^^  moments  at  a  time.     The  old  notion  was 

that  sitting  during  working  hours  was  a  sign  of 
laziness  and  not  to  be  tolerated.    Little  did  employers 


FATIGUE  193 

realize  that  compulsory  standing  when  not  necessary- 
was  impairing  efficient  results,  and  by  just  so  much 
diminishing  profits.  The  management  to-day,  working 
for  efficiency,  has  a  very  different  attitude  towards  the 
question.  It  beheves  that  employees  should  be  en- 
couraged to  sit  whenever  the  work  may  be  done  as  effi- 
ciently sitting  as  standing,  and  encourages  sitting  when- 
ever five  minutes'  rest  may  be  obtained  without  any  loss 
in  work. 

The  clerk  in  a  store  might  Just  as  well  sit  as  stand 
when  not  waiting  upon  a  customer  or  putting  stock  in 
order.     If  seats  are  provided,  and  clerks  are  en-  where 
couraged  to  use  them  whenever  it  does  not  in-  sitting  is 
terfere  with  work,  they  would  be  able  to  give  ^^^^^  ®' 
better  service  to  both  customer  and  employer,  because 
not  unnecessarily  tired  and  worn  out  by  useless  standing. 
The  same  appHes  with  many  operations  in  a  factory. 
Many  machines  allow  the  attendants  some   time  for 
sitting,  and  if  facilities  are  provided,  many  occasions 
would  arise  where  sitting  for  a  few  minutes  would  be 
possible.     The  periods,  although  short,  would  in  their 
total  make  a  great  difference  in  the  physical  condition 
of  employees  at  the  close  of  a  working  day. 

The  kind  of  stool  has  much  to  do  with  the  kind  of  rest 
that  it  gives.     A  mere  stool  serves  a  purpose,  but  to 
give  full  benefit,  it  should  have  back  rests,  and  Kind  of 
be  of  the  proper  height  so  that  the  feet  of  the  stool 
employee  rest  on  the  floor.     If  stools  are  too  ^®®^®<^- 
high,   foot-rests  should  be  provided.     In  many  cases, 
stools  should  be  provided  which  allow  quick  rising  and 
sitting.     Many   factories   do   not   even   provide    seats, 
and  the  foremen  do  not  allow  the  use  of  any 
improvised  by  the  workers.    They  beheve  that  ^^^"^s  is 

.,7^.        ^       11.  ......  not  laziness. 

Sitting  leads  to  laziness  and  diminishes  output. 

They  are  yet  to  be  enlightened  that  it  increases  effi- 


194  ECONOMICS  OF  EFFICIENCY 

ciency  and  output.  If  they  would  only  reflect  a  little, 
they  would  realize  that  the  more  they  relieve  their  em- 
ployees from  unnecessary  muscular  strain,  the  more 
energy  is  left  to  turn  out  work. 

Every  employee  should  have  a  certain  definite  task 
to  perform.  The  greater  the  specialization  of  industry, 
•WTiata  the  fewer  movements  are  demanded  of  the 
worker  employee.     All  his  energy  should  be  devoted 

should  do.  ^^  ^Yie  direct  performance  of  his  particular 
task.  Energy  consumed  in  doing  other  things  lessens 
by  so  much  the  energy  available  to  make  his  work  more 
efficient.  This  makes  many  demands  upon  the  man- 
agement. A  worker  should  not  use  his  time  or  energy 
in  getting  or  putting  back  tools  or  in  obtaining  or  re- 
moving materials.  Tools  and  materials  should  be  de- 
livered and  removed  by  unskilled  hands.  The  proper 
tools  and  the  proper  amounts  of  materials  should  always 
be  present,  and  in  a  place  which  causes  the  least  exer- 
tion to  obtain  when  wanted.  There  should  be  no  cause 
or  excuse  for  a  worker  to  leave  his  task.  Every  time 
this  happens  it  not  only  takes  time,  but  consumes 
energy,  and  diminishes  the  supply  for  real  productive 
work. 

The  old  method  of  handling  and  conveying  materials 
and  tools  from  place  to  place  when  wanted  was  by  the 
Methods  of  use  of  human  muscular  energy,  whereas  effi- 
conserving  ciency  demands  the  abolition  of  the  use  of  mus- 
energy.  cular  powcr  for  such  purposes,  and  its  conser- 

vation for  more  effective  work.  In  many  factories, 
in  this  enhghtened  industrial  age,  you  find  the  calling 
of  men  from  their  tasks  to  assist  in  moving  heavy  ar- 
ticles. Quite  different  is  the  modern  efficient  factory, 
where  a  man  is  not  called  upon  to  waste  his  energy  in 
such  work,  but  all  Hfting  is  done  more  effectively  by 
hoists,  cranes,  etc.     Only  recently,  I  visited  a  loft  fac- 


FATIGUE  195 

tory  in  the  city  of  New  York.  It  occupied  three  stories 
and  these  did  not  have  any  connection  except  the  stairs. 
A  few  hundred  dollars  would  have  installed  an  elevator, 
chutes,  and  speaking  tubes.  The  saving  in  time  alone 
is  sufficient  inducement  for  the  extra  expenditure,  while 
the  increased  efficiency  from  the  wasted  human  energy 
saved  will  repay  the  cost  of  installation  several  times 
during  a  year.  Elevators  of  various  sorts,  chutes, 
cranes,  hoists,  movable  platforms,  electric  trucks,  and 
conveying  belts  are  a  few  of  the  energy-saving  devices 
which  have  become  necessities  and  integral  parts  of 
modern  plants.  Speaking  tubes  and  telephones  play 
an  important  role  as  conservers  of  human  energy.  Too 
much  emphasis  cannot  be  placed  upon  using,  wherever 
possible,  various  devices  for  saving  human  effort  and 
energy.  The  conservation  of  human  energy  wards  off 
fatigue,  and  to  that  extent  increases  the  efficiency  of  the 
working  force. 

It  does  not  pay  to  wear  out  men.  If  men  are  forced 
to  work  at  such  a  pace  that  their  vigor  is  diminished, 
they  will  in  a  lifetime  do  less  work  than  they  wastes 
would  if  they  worked  at  a  lesser  pace.  Speed  from 
causes  losses  to  both  society  and  industry.  ^^*^sue. 
Professor  Irving  Fisher  estimates  the  minimum  annual 
cost  through  serious  illness  in  this  country  at  one  and 
one-half  billion  dollars,  and  says  that  the  economic 
waste  through  undue  fatigue  is  probably  much  greater. 
Fatigue  is  a  factor  which  should  be  reckoned  with  in  aU 
work.  It  is  not  due  to  work,  but  to  overwork.  Fatigue 
should  be  studied  by  every  employer,  and  the  work  of 
his  employees  should  be  so  directed  as  to  obtain  the 
highest  efficiency.  This  demands  a  minimum  of  fatigue. 
If  the  warnings  of  fatigue  are  not  heeded,  it  may  prove 
very  injurious.  Fatigue  may  limit  industrial  expansion, 
and  is  one  of  the  causes  of  misery,  poverty,  and  disease. 


196  ECONOMICS  OF  EFFICIENCY 

It  leads  to  nervousness,  craving  for  excitement,  and 
frequently  to  crime.  Workmen  should  be  taught  to 
work  to  best  advantage  and  to  accomplish  as  much  as 
possible  with  minimum  fatigue.  No  one  element  of 
industry  is  of  greater  peril  to  workers  than  fatigue.  It 
destroys  intelligence,  cuts  down  output,  impairs  quality, 
and  invites  industrial  accidents. 

QUESTIONS 

1.  What  is  the  relation  between  fatigue  and  efficiency? 

2.  What  are  the  causes  and  effects  of  fatigue  ? 

3.  What  are  the  effects  of  toxic  impurities  on  (i)  the  muscles, 
(2)  the  brain  ? 

4.  What  is  the  effect  of  fatigue  on  memory  ?    Account  for  the 
stupidity  of  children  who  work. 

5.  What  precautions  should  be  taken  in  sleep?    How  much 
sleep  is  necessary  for  a  worker  ? 

6.  What  are  the  chief  antidotes  to  fatigue? 

7.  Show  the  relation  between  intemperance  and  overfatigue. 

8.  What  is  the  importance  of  rest  periods  ?     What  decides  the 
length  of  the  periods  ? 

9.  What  is  the  relation  between  fatigue  and  accidents  ? 

10.  What  is  the  importance  of  training  in  order  to  resist  fatigue  ? 

11.  What  is  the  difference  between  real  and  false  fatigue? 

12.  How  may  fatigue  be  warded  off  through  conserving  the 
energy  of  workers  ? 

13.  What  are  the  methods  of  conserving  energy? 

14.  What  are  the  wastes  from  fatigue?  How  may  they  be 
eliminated  ? 

15.  What  are  the  limits  of  work  ?     How  may  they  be  decided  ? 

REFERENCES 

Books 

A.  R.  Adelson,  "Mental  Fatigue" ;  T.  Arai,  "Mental  Fatigue" ; 
J.  Goldmark,  "Fatigue  and  Efficiency";  L.  H.  Gulick,  "Mind 
and  Work,"  Chs.  VIII,  IX;  L.  H.  Gulick,  "The  Efficient  Life," 
Chs.  XI-XV;  Hough  and  Sedgwick,  "The  Human  Mechanism, " 


FATIGUE  197 

Chs.  V,  XVIII;  F.  S.  Lee,  "Fatigue,"  Harvey  Lectures,  PhHa- 
delphia,  1906,  pp.  169-194;  A.  Mosso,  "Fatigue,";  H.  Miinster- 
berg,  "Psychology  and  Industrial  Efficiency,"  Chs.  XVI,  XVII; 
S.  Nearing,  "Social  Adjustment,"  pp.  190-210;  M.  Offner, 
"Mental  Fatigue";  T.  Oliver,  "Dangerous  Trades,"  Ch.  VIII; 
W.  B.  Pillsbury,  "The  Essentials  of  Psychology,"  Ch.  XIV;  W. 
H.  R.  Rivers,  "The  Influence  of  Alcohol  and  other  Drugs  on 
Fatigue,"  W.  D.  Scott,  "Influencing  Human  Efficiency  in  Busi- 
ness," Ch.  IX;  Tolman  and  Guthrie,  "Hygiene  for  the  Worker," 
Ch.  IX;  C.  S.  Yoakum,  "An  Experimental  Study  of  Fatigue." 


Articles 

E.  S.  Bogardus,  "The  Relation  of  Fatigue  to  Industrial  Acci- 
dents," American  Journal  of  Sociology,  Vol.  17:  Nos.  2,  3,  4; 
T.  L.  Bolton,  "The  Fatigue  Problem,"  Journal  of  Pedagogy, 
Vol.  16,  pp.  97-123  ;  W.  Burridge,  "An  Inquiry  into  Some  Chem- 
ical Factors  of  Fatigue,"  Journal  of  Physiology,  Vol.  41,  pp.  285- 
307;  F.  W.  Eastman,  "An  Antitoxin  for  Fatigue,"  Harper,  Vol. 
119,  pp.  897-902  ;  H.  B.  Favill,  "The  Toxin  of  Fatigue,"  Survey, 
Vol.  24,  pp.  767-773;  M.  Foster,  "Weariness,"  The  Nineteenth 
Century,  Vol.  34,  pp.  337-352;  P.  W.  Goldsburg,  "Recreation 
through  the  Senses,"  Atlantic  Monthly,  Vol.  107,  pp.  411-423; 
W.  R.  Gowers,  "Fatigue,"  Quarterly  Review,  Vol.  200,  pp.  556- 
575;  W.  R.  Gowers,  "Brain  Fatigue,"  Living  Age,  Vol.  244, 
pp.  102-114;  L.  H.  Gulick,  "The  Time  to  Quit  Work,"  World's 
Work,  Vol.  14,  pp.  9196-9198;  L.  H.  Gulick,  "Effects  of  Mental 
Fatigue,"  World's  Work,  Vol.  14,  pp.  9345-9349;  W.  Hard, 
"  Fatigue :  Why  Men  Tire  and  the  Effect  of  Rest,"  System,  Vol.  24, 
pp.  377-387 ;  W.  Hard,  "What  Constitutes  a  Fair  Day's  Work," 
System  (English  Edition),  Vol.  25,  pp.  298-306;  H.  W.  Harper, 
"A  Contribution  to  the  Chemistry  of  Fatigue,"  Journal  of  Ameri- 
can Chemical  Society,  Vol.  25,  pp.  33-47  ;  F.  S.  Lee,  "The  Nature 
of  Fatigue,"  Popular  Science  Monthly,  Vol.  76,  pp.  182-195; 
F.  S.  Lee,  "Fatigue,"  Journal  American  Medical  Association, 
Vol.  46,  pp.  1491-1500;  Wm.  McDougall,  "The  Conditions  of 
Fatigue  in  the  Nervous  System,"  Brain,  Vol.  32,  pp.  256-268; 
J.  M.  Moore,  "Studies  of  Fatigue,"  Yale  Psychological  Laboratory 
Studies,  Vol.  3,  pp.  68-95;  W.  H.  Rivers,  "On  Mental  Fatigue 
and  Recovery,"  Journal  of  Mental  Science,  Vol.  42,  pp.  525-529; 
P.  G.  Stiles,  "The  Elements  of  Fatigue,"  Science  Conspectus, 
Vol.  3,  pp.  58-61 ;  T.  A.  Storey,  "Why  Workmen  Tire,"  Factory 


198  ECONOMICS  OF  EFFICIENCY 

Vol.  8,  pp.  273  +  ;  E.  K.  Strong,  "Fatigue,  Work,  and  Inhibition," 
Psychological  Bulletin,  Vol.  10,  pp.  444-450;  L.  I.  Thomas, 
"Sitting  Down  to  Work,"  Factory,  Vol.  12,  pp.  131  +  ;  E.L.  Thorn- 
dike,  "Mental  Fatigue,"  Psychological  Review,  Vol.  7;  WilHam 
A.  White,  "Some  Considerations  Regarding  the  Factor  of  Fatigue 
with  Reference  to  Industrial  Conditions,"  American  Journal  of 
Medical  Sciences,  Vol.  145,  pp.  219-225. 


CHAPTER  X 

Working  Environments 

During  the  last  few  years  of  the  nineteenth  century, 
many  employers  took  initial  steps  to  improve  working 
surroundings  and  sanitary  conditions  of  their 
plants.     Sanitary  and  hygienic  improvements  for**!^!^ 
were  introduced  in  many  plants,  as  well  as  provements 
many    movements    commenced    to    improve  in  the  nine- 
workers    mentally,   morally,   and    physically,   century. 
Employers   were   not   guided   by    the    same 
motives  in  the  improvements  as  they  are  to-day.    Em- 
ployees were  dissatisfied,  and  began  to  murmur  against 
the  appalling  hygienic  and  sanitary  conditions  found  in 
plants  and  working  places.     Times  were  prosperous  and 
employers   were   making   large   profits.     To    calm    the 
dissatisfaction,  many  improved  sanitary  conditions  and 
introduced  innovations   to  benefit  the  working  force. 
Employers  believed  that  this  was  the  cheapest  way  to 
cahn  the  rising  discontent.     To-day,  there  is  a  differ- 
ent motive  for  looking  after  the  health  of  the  working 
force.     It  is  a  doUars-and-cents  proposition,  and  because 
of  this  it  is  daily  attracting  more  attention  and  getting  a 
firmer  hold  on  business  men.    Dollars  and  cents,  sentiment 
and  not  sentiment,  is  the  ruling  force  in  the 
business  world.     Sentiment  has  little  place  in  actual 
business  where  self-interest  is  the  guiding  motive,  yet 
many  would  have  us  believe  that  other  motives 
play  an  important  role.     The  average  business  f^}l^Q^^ 
man  is  not  in  business,  with  its  endless  bur- 
dens and  cares,  for  the  love  of  it,  but  for  the  profits  made. 

199 


200  ECONOMICS  OF  EFFICIENCY 

The  old  saying  *' business  is  business"  has  always  ruled 
supreme  in  business  activities,  and  will  continue  to  do 
so  as  long  as  men  work  for  profits.  Such  being  the 
case,  it  will  be  only  the  exceptional  business  man  who 
is  moved  by  sentiment  to  introduce  changes  for  the  bet- 
tering of  his  working  force. 

As  soon  as  business  men  realize  that  safeguarding  and 
protecting  the  health  of  their  workers  lower  costs  and 
Health  an  increase  profits,  it  will  be  the  exceptional  em- 
essential  ployer  who  will  not  take  every  possible  pre- 
factor  in  caution  to  maintain  the  health  of  his  working 
e  ciency.  fQ^ce.  One  effect  of  the  present  efficiency 
movement  is  the  changing  of  the  motive  for  paying 
attention  to  health  from  one  of  sentiment,  paternalism, 
and  altruism,  to  one  of  dollars  and  cents.  Health  in  a 
working  force  is  an  absolute  essential  for  eflficiency,  and 
the  realization  of  this  accounts  for  the  interest  taken 
at  present  in  this  factor  of  efficiency.  Efficiency  de- 
pends chiefly  upon  the  human  element  in  business. 
Health  is  its  basic  structure,  and  without  good  health 
efficiency  is  not  attained.  The  health  of  the  employee 
is  accordingly  of  primal  importance  to  the  employer. 
Until  recently,  employers  were  not  only  indifferent,  but 
ignorant  of  the  means  of  maintaining  the  health  of  their 

workers.  This  surprising  lack  of  interest  in 
health  ^^^     ^^^  health  of  the  working  force  has  been  due  to 

the  fact  that  its  relation  to  profits  was  not 
known.  Employers  are  interested  in  profits  alone,  and 
as  soon  as  they  realize  that  profits  depend  on  health, 
they  will  become  interested  in  it.  One  can  work  at 
his  best  only  when  in  good  health,  with  brain  clear, 
and  with  muscles  active  and  responsive.  To  obtain 
the  best  productive  results  from  the  human  energy  ex- 
pended is  the  aim  of  efficiency.  The  human  element, 
or  workers,  should  be  of  the  best  quaHty,  and  this  means 


WORKING  ENVIRONMENTS  201 

good  physical  health.  Health  and  efficiency  are  closely 
related,  and  the  latter  cannot  be  reached  without  the 
former. 

Modern  industry  demands  of  workers  health  and  good 
physique,  and  no  kind  of  work  can  be  performed  effi- 
ciently   without    good    health.     Intellectual 
keenness   and  foresight,   essential  factors  in  ju.hedth 
employees,   are  impaired   without  it.     Sick- 
ness and  ill-health  are  the  greatest  foes  to  profits,  effi- 
ciency, and  success.     The  employer  cannot  afford  to  tol- 
erate any  conditions  which  endanger  or  impair  the  health, 
or  lower  the  vitality  of  his  working  force.    Impaired  vigor 
is  a  loss  to  everyone.     It  affects  employees  by  cutting 
wages,  ofttimes  causing  great  misery  and  suffering,  and  at 
the  same  time  is  costly  to  the  employer  by  increasing 
costs.     No  one  can  do  efficient  work  of  the  proper  quality 
and  quantity  unless  he  is  fit  in  body  for  his  task. 

In   the   struggle   for  industrial   supremacy  which  is 
being  waged   by   the  great  industrial  nations   of   the 
world,  success  depends  largely  upon  the  effi-  congerva- 
ciency  of  the  human  element  in  industry.     The  tion  of 
nation  which  first  masters  the  secret  of  ob-  health;  its 
taining  efficiency  from  its  working  force  will  "^p°^^^^®- 
be  the  one  which  will  forge  ahead  and  conquer.     The 
conservation  of  health,  strength,  and  vigor,  the  main- 
taining of  a  high  vitahty  in   the  working   force,   and 
the  prevention  of  disease  are  important  economic  factors 
in    this   industrial   struggle,    and   are   more  important 
than  the  conservation  of  our  forests  and  natural  resources. 
The  greatest  wastes  in  our  industrial  system  are  those 
due  to  illness,  and  to  workers  trying  to  work  with  im- 
paired health.     The  conservation  of  health  is  of  the 
greatest  importance  to  the  employer,  to  the  employee, 
and  to  the  nation  at  large,  and  demands  the  closest 
attention  of  federal,  state,  and  municipal  powers,  the 


202  ECONOMICS  OF  EFFICIENCY 

care  of  father,  mother,  and  teacher,  and  the  earnest 
attention  of  the  employer  of  men  and  women. 

The  effect  of  environment  on  workers  is  great,  and 
there  is  an  intimate  relation  between  the  conditions 
Environ-  which  surround  workers  and  their  efficiency, 
mentand  Expensive  machinery  is  carefully  protected 
efficiency.  from  dust,  and  kept  well  lubricated  and  in 
good  repair,  but  until  recently  no  thought  was  given  to 
the  more  important  factor  in  efficiency,  the  human 
factor,  which  tends  and  operates  the  machines.  Just 
as  machinery  is  affected  by  environment  so  is  the  worker, 
but  a  great  deal  more  so,  as  he  is  sensitive  to  slight 
changes  in  the  conditions  which  surround  him.  Suc- 
cess in  the  average  business  enterprise  depends  in  a 
large  measure  upon  the  workers'  physical  and  mental 
well-being.  The  importance  of  the  best  working  con- 
ditions and  surroundings  is  more  generally  recognized 
each  succeeding  year.  Efficiency  depends  upon  the 
comfort  of  workers  at  work,  as  well  as  upon  their  health. 
The  aim,  therefore,  in  every  enterprise  is  to  get  working 
conditions  most  conducive  to  the  comfort,  and  to  the 
health  of  the  workers.  Working  conditions  and  sur- 
roundings should  be  made  hygienic,  sanitary, 
and  healthful  in  every  possible  way.  Light, 
ventilation,  temperature,  humidity,  cleanHness,  dust, 
air,  odors,  gases,  and  dampness  are  some  of  the  factors 
which  should  be  given  careful  study  in  every  enterprise. 
The  neglect  of  any  one  has  a  direct  bearing  upon  effi- 
ciency through  causing  discomfort  and  impairing  the 
health  and  the  vitahty  of  the  working  force. 

The  hghting  facilities  in  an  enterprise  have  a  direct 

Effects  of       and  important  bearing  upon  the  health  and 

good  the  efficiency  of  the  employees.     According 

^  *^°^'         to  experts,  the  normal  capacity  of  workers 

may  vary  20  per  cent  under  proper  and  improper  light- 


WORKING  ENVIRONMENTS  203 

ing  conditions.  Good  lighting  affects  the  efficiency  of 
workers  in  various  ways,  as :  causes  greater  accuracy  in 
work,  saves  eyestrain,  permits  greater  rapidity  of 
work,  increases  output,  reduces  the  number  of  accidents, 
makes  more  cheerful  surroundings,  increases  the  com- 
fort of  workers,  is  conducive  to  cleanliness  by  exposing 
dirt,  decreases  costs  through  less  spoiled  work  and  fewer 
mistakes  in  work,  improves  the  quahty  of  work,  and 
lastly,  discourages  slovenly  work  and  soldiering. 

Efficiency  in  illumination  is  measured  in  obtaining 
the  object  sought,  namely  sight.  It  depends  not  upon 
the  number  of  lights  supplied  but  upon  the 
ability  of  the  eyes  to  perform  their  duties  with-  mu^n^tion! 
out  the  least  effort  or  strain.  There  is  no 
standard  as  to  light  and  illumination  in  plants,  offices,  or 
stores.  Enterprises  vary  with  the  character  of  work 
performed,  and  with  the  amount  of  light  required.  The 
test  is  that  there  should  be  sufficient  Hght  in  every  part 
of  a  plant,  so  that  the  work  required  to  be  done  may  be 
performed  without  any  eyestrain,  or  delay  through  lack 
of  proper  light. 

The   cheapest   and   the   best   light   is   natural   light 
diffused  uniformly  through  sufficient  windows  for  proper 
lighting.     The   eyes  should  not  be  strained  Natural  vs. 
even  on  a  cloudy  day.     Experiments  prove  artificial 
that  after  three  hours  of  work  in  ordinary  day-  ^s^*"^^. 
Hght,  there  is  little  change  in  the  working  efficiency 
of  the  eye,  but  after  the  same  period  of  work  in  artificial 
Hght  the  keenness  of  the  eye  has  fallen  off  very  much, 
and  there  is  a  distinct  loss  in  muscular  adjustment  for 
accurate  vision.     Observe  an  object  steadily  for  half 
an  hour  in  natural  Hght  and  then  in  artificial ;  the  differ- 
ence in  strain  upon  the  eye  will  be  noticeable.     Artificial 
Hght  of  any  kind  differs  materially  from  dayHght  in  that 
it  does  not  furnish  a  pure  white  light,  the  customary  light 


204  ECONOMICS  OF  EFFICIENCY 

rays  being  red,  yellow,  or  violet.  There  is  a  difference 
of  opinion  as  to  the  color  best  suited  to  our  eyes,  but  it 
cannot  be  disputed  that  vision  is  the  most  perfect,  and 
there  is  less  strain  to  the  eyes  under  the  influence  of 
white  Hght. 

It  is  only  recently  that  business  men  have  learned  the 
importance  and  the  value  of  an  abundant  supply  of 
How  to  ob-  natural  Ught  and  have  taken  special  care  to 
tain  supply  have  as  large  an  area  of  glass  as  possible, 
of  dayUght.  -^qq^^  g^s  ^^qW  ^g  walls  are  used  for  windows. 
The  saw-tooth  roof  with  the  glass  portion  towards  the 
north  allows  a  satisfactory  diffusion  of  Hght.  To  get 
the  greatest  abundance  of  dayHght,  the  window-glass 
should  be  either  pure  white,  ribbed,  or  prismatic,  and 
scrupulously  clean.  The  walls  and  the  ceiling  of  a 
building  have  an  important  bearing  upon  the  diffusion 
of  light,  and  should  be  painted  creamish  white,  white, 
or  greenish  gray.  Some  use  whitewash,  but  its  lack 
of  durability,  and  its  falling  off  in  flakes  makes  it  a 
continuous  nuisance.  Frequently  a  wadl  painted  white 
gives  a  glare  which  is  injurious  to  the  eye.  A  cream 
color  never  glares,  and  gives  the  best  satisfaction  as  a 
suitable  color  for  walls  and  ceiKng.  Walls  should  be 
kept  clean,  because  if  dirty  and  dingy,  the  proper  diffu- 
sion is  not  obtained,  and  the  lack  of  sufflcient  light  may  be 
the  cause  of  eyestrain. 

The  eyes  of  a  worker  in  many  kinds  of  work  must 
remain  constantly  fixed  upon  the  work  which  he  is 
Benefit  doing,  or  upon  near-by  objects  in  the  room, 

from  This  constant  watching  is  fatiguing  and  strain- 

windows,  jj^g  upon  the  eyes.  A  momentary  glance  at 
something  in  the  distance  relieves  the  strain,  relaxes 
the  tension,  and  allows  the  eyes  to  work  on  refreshed. 
Glancing  out  of  a  window  in  such  cases  has  a  very  bene- 
ficial influence,  and  works  toward  efi&ciency.     Formerly, 


WORKING  ENVIRONMENTS  205 

employers  objected  to  windows  because  they  believed 
that  employees  wasted  time  by  glancing  or  looking  out, 
and  windows,  they  declared,  interfered  with  work. 
Little  did  they  realize  that  windows,  in  place  of  de- 
creasing output,  increased  it,  by  furnishing  a  momentary 
rest  and  relaxation  to  busy  eyes,  and  assisted  in  increasing 
the  efficiency  of  workers. 

During  many  months  of  the  year,  sufficient  natural 
light  cannot  be  obtained  for  working  through  the  en- 
tire working  day,    and   artificial   hghting   is 
absolutely  necessary.     Every  afternoon,   fre-  yghting 
quently   mornings,    and   occasionally   during 
stormy  days  in  winter,  artificial  Hghting  must  be  used, 
while  many  employers  have  night  work,  and  then  it 
is  the  only  fight  possible.     An  artificial  lighting  system 
is   necessary   in   every   enterprise.     Arc,   incandescent, 
gas,  and  kerosene  lamps  were  practically  the  only  arti- 
ficial fights  available  ten  years  ago.     During  the  past 
few   years   many   improvements   have   been    made    in 
electric  and  gas  fighting.     Of  the  many  vari- 
eties of  electric  fights  on  the  market,  the  tung-  hghting. 
sten  is  the  most  favored  and  the  most  satis- 
factory.    Due  to  the  absence  of  danger  from  fire,  to  no 
gases  being  thrown  off,  and  to  causing  no  material  in- 
crease in  temperature,   the  electric  lamp  has  decided 
advantages  over  the  gas.     If  the  electric  lamp 
is  not  avafiable  or  possible,  gas  used  with  a  over^gas^^^ 
Welsbach  burner  gives  the  most  satisfactory 
light.     With  the  increase  during  recent  years  in   the 
use  of  electricity,  it  is  hard  to  find  a  town  of  any  size 
in  the  middle  west  or  the  east,  or  even  in  the  major 
part  of  the  far  west  which  has  not  the  use  of  electricity. 
If  a  building  is  not  wired,  and  electricity  is  available, 
the  greater  efficiency  resulting  from    electric    fighting 
will  in  a  short  time  pay  the  cost  of  installation  of  an 


2o6  ECONOMICS   OF  EFFICIENCY 

electric  lighting  system.  Electric  lighting  gives  the  best 
satisfaction  of  all  lighting,  and  should  be  used  wherever 
possible. 

The  requirements  of  a  satisfactory  artificial  lighting 
system  are  as  follows :  There  should  be  sufficient  light 
to  allow  every  employee  to  do  his  work  with- 
H^hting^  out  straining  of  the  eyes,  and  without  hesita- 
require-'  tion  from  not  being  able  to  see  distinctly  the 
mentsof  part  of  the  task  being  performed.  There 
system.  should  be  uniform  illumination.  The  entire 
working  surface  should  be  Kght,  and  Hghting 
should  not  be  restricted  to  certain  sections.  There 
should  be  reliability.  The  light  should  always  be  avail- 
able when  needed,  and  should  be  constant  and  not 
flickering,  because  flickering  light  is  very  straining  to  the 
eye.  There  should  be  proper  quality.  This  has  to  do  with 
intensity,  —  that  is,  proper  intensity  to  do  work,  proper 
diffusion  through  the  lighted  space,  and  absence  of  glare. 

A  room  may  be  lighted  by  overhead  lamps,  by  indi- 
vidual lamps,  or  both.  Formerly,  the  individual  lamp, 
^     ,     ,       with  a  small  number  of  overhead,  was  the 

Overhead  ,  i      i       <•  i*   i     •  i 

andindi-  usual  method  of  lightmg,  and  as  a  result,  a 
viduai  large  part  of  the  floor  space  was  in  compara- 

amps.  ^j^^    darkness.     This    method    is    poor    and 

defective.  With  the  coming  of  the  tungsten,  the  mer- 
cury vapor,  and  other  electric  lights,  the  overhead  lamp 
has  come  into  favor,  and  the  individual  is  gradually 
disappearing  from  use.  The  overhead  is  the  most  effi- 
cient, and  the  only  system  of  lighting  which  should  be  in 
use  in  any  plant,  store,  or  office. 

The  eye  is  the  most  important  organ  of  the  human 
Conserva-  body,  and  for  its  conservation  httle  is  being 
tion  of  the  done.  The  conservation  of  the  eye  means  the 
®^®'  prevention  of  all  causes,  and  the  amehoration 

of  aU  conditions  which  tend  to  the  destruction,  or  the 


WORKING  ENVIRONMENTS  207 

impairment  of  eyesight.  The  improper  use  of  eyes  causes 
injury  to  the  eyes  themselves  and  may  greatly  decrease 
the  efficiency  of  workers  through  producing  illness. 
Loss  of  sight  reduces  a  worker's  efficiency  to  a  minimum, 
while  the  least  impairment  of  sight  injures  it  somewhat. 
The  lack  of  good  sight  is  a  more  or  less  serious  handicap 
to  every  worker.  The  eye  is  an  organ  whose  sensitive- 
ness exposes  it  to  numerous  risks,  and  every  worker  daily 
runs  great  risks  and  is  often  the  victim  of  injuries 
resulting  in  the  impairing  of  sight.  These  risks  are  often 
preventable.  Eyestrain  causes  brain  fatigue  „  . 
and  has  a  direct  bearing  upon  efficiency.  Poor 
light  produces  a  bodily  and  mental  discomfort  which 
seriously  affects  workers  and  their  work.  Headache  is 
a  common  ailment  from  eyestrain.  There  is  a  great 
temptation  to  abuse  the  human  eye.  Bad  methods  of 
lighting  are  so  common  that  good  lighting  is  the  excep- 
tion. Industrial  conditions  to-day  demand  the  perform- 
ance of  a  lot  of  work  by  artificial  light,  and  it  is  time 
that  employers  should  realize  that  good  Kghting  is  a 
dollars-and-cents  proposition.  The  loss  in  efficiency  of 
all  classes  of  workers  through  bad  lighting  entails  losses 
of  milHons  of  dollars  annually. 

Every  place  where  work  is  performed  with  the  aid 
of  artificial  light  should  be  carefully  studied  to  see  that 
the  following  injurious  conditions  do  not  exist ;  injurious 
excessive  fight,  insufficient  fight,  glare,  strong  lighting 
contrasts,  flickering,  heat  or  odors  from  light,  conditions, 
and   shadows.     A  too  brilfiant  illumination  is  just  as 
injurious  as  lack  of  sufl&cient  fight.     Frequently,  inten- 
sity of  fight  is  caused  by  the  fighting  fixtures 
being  so  arranged  that  the  worker  must  look  Jg^t^^^^^ 
steadily,  or  at  intervals,  at  the  source  of  light. 
Fixtures  should  never  be  arranged  so  that  the  light  is 
on  a  level  with  the  eye  of  the  worker,  and  to  prevent 


2o8  ECONOMICS  OF  EFFICIENCY 

occasional  glancing  at  a  glaring  light,   reflectors  and 
shields  should  be  provided  for  all  lights.     In- 
nsu   cient    g^Q^^^jgj^^-  ]ig]it  to  see  clearly  the  performing  of 
work,  every  one   knows    and    admits  causes 
strain  upon  the  eyes.     The  amount  of  light  needed  de- 
pends upon  the  character  of  the  work,  and  should  be 
sufficient  to  allow  the  worker  to  see  clearly  every  opera- 
tion necessary  to  be  performed  without  strain  on  the  eyes. 
This  is  a  problem  for  careful  investigation,  and  too  great 
emphasis  cannot  be  placed  upon  the  bearing  of  proper 
lighting  upon  output,  quahty  of  work,  efficiency  and 
profits. 

Glare  is  very  fatiguing  and  straining  to  the  eyes. 
It  may  come  from  the  lights  themselves,  from  walls, 
ceilings,     or    bright    surfaces.     To    prevent 
lamps  from  glaring,  reflectors  and  globes  are 
used.     A   reflector   performs   an   additional   service   in 
diffusing  light  most  effectively  for  work.     To  get  the  best 
results,  reflectors  and  globes  should  be  kept 
and  globes,    clean.     Where    individual    lamps    have    not 
been  discarded,  extreme  care  should  be  exer- 
cised, or  the  eyes  of  workers  will  suffer  greatly  from  strain. 
The  lamps  should  never  be  on  a  level  with  the  eye, 
and  should  be  such  that  the  light  falls  over  the  shoulder. 
Frequently,   a  slight  change  in  arrangement  and   the 
addition  of  globes  and  reflectors  will  cause  much  saving 
How  to  ^f  strain  to  the  eyes  of  workers.     A  careful 

prevent  examination  should  be  made  in  every  case, 
glare.  ^^^^  •£  carefully  arranged  and  protected  lamps 

are  not  used,  a  few  dollars  may  greatly  increase  the  effi- 
ciency of  workers  through  changing  fixtures  and  the  ad- 
dition of  reflectors  and  globes.  Walls  and  ceilings  should 
be  such  as  to  prevent  glare.  A  cream  kalsomine  gives 
the  best  satisfaction  for  diffusing  light,  and  at  the  same 
time  is  not  glaring  to  the  eye.     By  paying  attention  to 


WORKING  ENVIRONMENTS  209 

fixtures,  reflectors,  and  globes,  an  ample  supply  of  light 
may  be  obtained  without  being  in  any  way  glaring  to 
the  eyes  of  workers. 

Flickering  and  strong  contrasts,  or  sudden  changes 
in  the  intensity  of  Hght,  are  very  injurious  to  the  eye. 
A  uniform  steady  light  is  what  is  desired,  and  . 

is  what  every  employer  should  insist  upon      ^  ^"^^* 
having.     There  are  so  many  excellent  lamps  on  the  mar- 
ket that  there  is  no  excuse  for  a  flickering  one.     Strong 
contrasts  in  electric  lighting  are  caused  by 
some   fault   in    the    circuit,    and    the    cause  contrasts, 
should  be  ascertained  as  soon  as  possible,  and 
remedied  before  injury  is  done  to  the  eyes  of  workers. 
Serious  injuries  to  the  health  of  employees  frequently 
arise  from  poisonous  odors  given    off    by  gas   lamps. 
In  one  factory  sickness  was  reduced  50  per 
cent  by  changing  from  gas  to  electric  hght-  ^f  gfg^^*^ 
ing.     If  a  working  place  is  Hghted  by  gas,  a 
frequent  inspection  should  be  made  to  see  if  workers  in 
any  way  suffer  from  the  products  given  off  by  the  com- 
bustion of  the  gas.     If  gas  jets  are  too  near  workers, 
discomfort,   headaches,   and    sickness    frequently    arise 
from  the  effects  of  the  products  given  off  and  from  the 
heat  of  burning  gas.     If  gas  is  necessary,  extreme  care 
should  be  taken  to  make  certain  that  neither  the  health 
nor  the  eyes  of  workers  suffer  therefrom. 

The  eye  is  contracted  more  during  the  day  than  at 
night,  which  is  due  to  the  greater  intensity  of  daylight 
over  artificial  hght.  It  is  not  so  sensitive  to 
changes  in  illuminating  intensity  during  the  Su^nation. 
day  as  at  night,  when  it  is  more  relaxed  on 
account  of  the  lower  intensities  of  artificial  hght.  An 
intensity  suitable  at  night  may  not  be  adequate  for  day 
illumination.  If  artificial  Hght  is  used  during  the  day, 
special  care  should  be  taken  to  secure  proper  intensity 


2IO  ECONOMICS  OF  EFFICIENCY 

so  that  the  worker  is  able  to  perform  his  task  without 
strain  to  his  eyes. 

Poor  lighting  and  gloomy  surroundings  have  depress- 
ing bodily  and  mental  effects  which  seriously  affect 
Good  light-  workers  in  their  work.  Light  and  cheerful 
ing  a  neces-  surroundings  have  a  direct  effect  upon  workers 
sity.  by  making  them  more  comfortable,  contented, 

and  satisfied.  The  efficiency  of  the  worker  in  every  form 
of  business  activity  is  greatly  increased  by  the  provision 
of  good  Hght.  Too  great  emphasis  cannot  be  placed 
upon  the  value  of  good  hghting  as  a  factor  in  lowering 
costs  of  production,  and  it  is  only  recently  that  the 
importance  of  this  factor  is  being  recognized  by  employers. 
The  discomfort  of  a  stuffy  room  is  apparent  when  it 
is    entered.     It   affects   health   and   produces   physical 

and  mental  conditions  which  decrease  efh- 
Efifects^of       ciency.     No  one  can  work  as  well  in  a  stuffy, 

ill-smelling,  uncomfortable  room  as  he  can 
where  the  air  is  fresh  and  pure,  and  has  the  proper  amount 
of  moisture  and  heat.  The  breathing  of  foul  air  brings 
on  a  sense  of  drowsiness  and  a  lack  of  ambition,  which 
are  conditions  which  affect  thought,  interest,  attention, 
and  concentration.  Foul  air  fosters  indolence,  inac- 
curacy, carelessness,  and  poor  work.  Workers  are 
practically  forced  into  these  faults  through  physical 
conditions  under  which  they  work,  and  yet  they  are 
blamed  and  criticized  for  them.  No  matter  what  the 
nature  of  the  work,  mental,  physical,  or  merely  mechan- 
ical, if  the  air  a  worker  breathes  and  is  surrounded  by 
is  not  suited  to  his  body,  an  improvement  in  that  air 
would  be  an  important  factor  in  increasing  his  efficiency. 

The  value  of  pure  fresh  air  of  proper  humidity 
pure^ak         ^^^   temperature  cannot    be    overestimated, 

and  no  effort  or  expense  should  be  spared  to 
supply  it.     Pure  air  is  an  absolute  necessity  for  efh- 


WORKING  ENVIRONMENTS  211 

ciency,  and  the  expense  entailed  in  procuring  it  is  re- 
turned several  times  during  the  year  in  more  and  in 
better  work.  It  is  strange  that  shrewd  business  men 
who  are  always  on  the  alert  for  improvements  and 
innovations  for  increasing  profits  have  overlooked  air, 
a  most  important  factor  in  reducing  costs  and  increasing 
efficiency. 

The  conditioning  of  air  so  that  a  worker  may  work 
under    the    most    favorable  conditions  demands  close 
attention    of    every    employer.     The    chief  ^j.  condi- 
f actors    to    be    considered    are    temperature,  tioning; 
humidity,    air   movement,  dust,  and   fumes,  chief  factors 
The  chief  thing  which  makes  air  in  a  working  place 
harmful,  aside  from  the  special  problems  of  dust  and 
fumes,  is  overheating,  and  this  is  particularly  so  with 
the    presence    of    excessive    moisture.     A    temperature 
over  seventy  degrees  Fahrenheit  affects  the  heat-regu- 
lating mechanism  of  the  body  by  keeping  the  blood  in 
the  skin  and  away  from  the  vital  organs,  which  impairs 
the  efficiency  of  the  nervous  and  digestive  systems,  and 
of  the  body  as  a  whole.     The  general  effect  Effects  of' 
of  heat  and  moisture  is  familiar  to  every  one  a  high 
who  has  tried  to  do  either  brain  or  muscular  tempera- 
work  in  a  heated  boiler  room,  as  compared 
with  the  brisk  temperature  of  an  October  day.     It  can- 
not be  denied  that  workers  in  any  place  where  the  tem- 
perature is  over  seventy  degrees  Fahrenheit  have  their 
health  impaired  by  producing  a  low  vitality  with  a  less 
disease-resisting  force,  and  become  easy  victims  to  tuber- 
culosis and  other  contagious  diseases. 

The  first  important  problem  of  air-conditioning  is  the 
prevention  of  overheating,  and  the  practical 
method  for  attaining  this  end  is  the  changing  J^l^^^^^^^ 
of  the  air.     Ventilation  or  air  change  is  ac- 
complished either  by  natural  or  by  artificial  means.    In  a 


212  ECONOMICS  OF  EFFICIENCY 

room  where  only  a  few  people  work,  the  air  may  be 
transferred    through    windows,    cracks,    sub- 
*^  '        stances   of   walls,    ceiHngs,    and   floors   with 
sufiS-cient   rapidity   without   making   special   provisions 
for   the  purpose.     Where  many  are  working,   such  is 
impossible,  and  some  artificial  system  should 
*^  ^^  '       be  used.     The   average  individual  at  work 
produces  about  as  much  heat  per  hour  as  is  given  off  by 
the  burning  of  two  candles.      In  many  places  this  is 
increased  by  the  running  of  machinery,  the  lighting  sys- 
tem, and  other  sources  of  heat.     The  heated  air  should 
be  removed,  and  provision  should  be  made  by  a  ventilat- 
ing system  to  remove  and  to  replace  it  by  cool  air.     If 
air  is  introduced  from  the  outside,  it  should  be  made  in 
temperature  a  httle  below  that  which  is  normally  felt 
to  be  comfortable.      In  summer  time  it  may  be  neces- 
sary to  cool  the  air,  while  in  winter  the  air  should  be 
warmed.     The  latest  improvement  is  to  cleanse  the  air 
from  a  room,  and  to  force  it  back  again.     If  such  a  sys- 
tem is  used,  the  hot  air  expelled  may  have  to  be  cooled 
after  it  is  cleansed  before  it  is  returned  to  the  room. 
In  every  working  place,  incoming  air  should 
Tempera-      ^^^^  ^^  below  sixty  degrees  Fahrenheit,  be- 
cause if  so,  it  would  interfere  with  the  effi- 
ciency of  the  workers.     The  chief  problem  is  the  expulsion 
of  the  heated  air,  and  the  introduction  of  cool  pure  air 
to  take  its  place.     Methods  of  ventilation  are  many 
and  should  be  suited  to  meet  each  particular  case.     It  is 
generally  accepted  that  hot  air  should  be  taken  out  near 
the  top  of  a  room,  and  cool  air  admitted  near  the  bottom. 
The  problem  of  space  for  occupants  is  an  important 
one  in  ventilation.     Experience  has  proven 
k.wanc^'       ^^^^  ^^^  minimum  space  per  person  should 
not  be  less  than  two  hundred  and  fifty  cubic 
feet  where  artificial  lighting  is  not  used,  and  four  hun- 


WORKING  ENVIRONMENTS  213 

dred  where  it  is.  The  two  minima  should  be  fixed  and 
provided  for  by  statutory  law.  When  the  air  space 
is  less  than  the  above  minimum,  it  is  practically  impos- 
sible to  properly  condition  the  air,  but  above,  it  may  be 
done  in  some  cases  by  natural,  and  in  others  only  by 
artificial  means.  Having  adequate  cubic  space  does  not 
by  any  means  insure  good  air,  because  it  simply  pre- 
vents overcrowding  to  the  point  where  proper  air  condi- 
tions are  impossible.  Where  a  room  has  the  proper 
air  space,  the  question  of  comfort  on  the  part  of  occu- 
pants depends  upon  the  important  problem  of  air  change. 
English  experts  have  discovered  that  without  proper 
provision  for  air  change,  the  condition  of  air  was  no 
better  in  rooms  with  over  &ve  thousand  cubic  feet  of 
air  space  per  person  than  in  those  with  an  air  space  of 
over  three  hundred. 

Proper  air  conditions  in  a  room  should,  except  in  the 
case  of  temperature,  closely  imitate  the  outside  atmos- 
phere.    The  air  out  of  doors  is  never  still, 
and    is    constantly    in    motion.     The    move-  Nation 
ment  brings   slight  changes  of   temperature 
which  are  invigorating  and  stimulating.     A  basic  prin- 
ciple of  ventilation  is  not  merely  that  a  certain  amount  of 
pure  air  should  be  brought  into  a  room  and  foul   air 
expelled,  but  that  the  air  should  be  exchanged 
in  such  a  fashion  as  to  produce  a  steady  move- 
ment of  air  in  every  part  of   the  room  where  human 
beings  are  at  work.     Proper  circulation  or  movement 
is  an  absolute  essential  in  air  conditioning.     Experts 
declare  that  the  air  in  a  room  should  be  made  to  move 
at  the  rate  of  from  two  to  five  feet  per  minute.     A 
majority  of  ventilating  engineers  declare  that  jj^^^jg  j^^ 
the   IlKnois   law    as   to   air    requirements    is 
satisfactory.     The  law  requires  that  fifteen  to  eighteen 
hundred  cubic  feet  of  air  per  hour  according  to  specified 


214  ECONOMICS   OF  EFFICIENCY 

conditions,  for  each  person  present  and  employed,  should 
be  supplied,  unless  the  cubic  space  in  the  room  should 
be  over  two  thousand  cubic  feet  per  occupant,  and 
outside  window  and  door  space  be  equal  to  one  eighth 
of  the  floor  space.  This  gives  a  reasonable  rate  of  air 
change,  and  is  satisfactory  for  efhcient  work. 

Conditioning  of  air  has  to  do  with  quahty  as  well 
as  quantity.  Quahty  deals  with  temperature,  humidity, 
o  aUtv         dust,   fumes,    and   gases.     Temperature   and 

humidity  are  measured  by  an  instrument 
called  a  shng-psychrometer,  which  consists  of  a  pair 
of  thermometers,   one  of   the  ordinary   type,   and   the 

other  having  the  bulb  covered  with  a  wet 
diameter,     cloth.     Moisture    evaporates    from    the    wet 

bulb  at  a  rate  which  depends  upon  the  amount 
of  moisture  in  the  air,  this  evaporation  cools  the  wet  bulb, 
and  lowers  the  temperature,  which  is  recorded.  From 
the  temperature  of  the  dry  bulb  thermometer,  and  the 
difference  in  the  readings  between  the  dry  and  the 
wet  bulb,  the  moisture  in  the  air  is  determined.  A 
high  wet  bulb  reading  denotes  high  temperature  and 
a    high    percentage    of    moisture,    a     condition    most 

harmful  to  the  human  body.  Haldane  has 
Effects  of  shown,  as  far  as  the  psychological  effect  is 
humidity.       concerned,    that    a    very    high    temperature 

with  low  humidity  is  about  the  same  as  a 
very  low  temperature  with  high  humidity.  When 
the  temperature  rises  to  eighty  degrees  Fahrenheit  with 
moderate  humidity,  and  about  seventy  degrees  Fahren- 
heit with  high  humidity,  depression,  headache,  and  dizzi- 
ness manifest  themselves.  At  seventy  degrees  Fahren- 
heit, with  saturated  air,  Haldane  found  that  the  temper- 
ature of  the  body  actually  began  to  rise,  that  is,  fever 
set  in.  A  moderately  high  temperature  with  a  low 
humidity  produces  a  stimulating  effect,  causing  irrlta- 
biHty,  nervousness,  and  discomfort. 


WORKING  ENVIRONMENTS  215 

Air  always  contains  a  certain  amount  of  water  in  the 
form   of  vapor,   which  varies   from   thirty   degrees   to 
complete  saturation,  and  gives  from  one  to 
twelve  grains  of  water  in  a  cubic  foot  of  air  "^'atenn 
according    to    temperature.     A    well-known 
physician  states  that  the  daily  amount  of  water  given 
off  by  the  skin  of  a  single  person  is  two  and  a  half  pounds, 
and  about  ten  ounces  by  the  lungs.     When  the  ^ 

,  .   ,       -^  ,      °      r  •   ,  Causes. 

air  possesses  a  high  percentage  of  moisture, 
it  lessens  evaporation,  as  it  has  Httle  drying  power,  and 
the  water  from  the  skin  is  with  difficulty  evaporated. 
One  of  the  chief  methods  of  cooling  the  body  is  evapora- 
tion of  the  perspiration.  When  the  air  is  hot  with  high 
humidity,  it  tends  to  increase  the  effects  of  heat,  and 
discomfort,    headache,    and    even    fever    follow.     This 
condition  may  become  so  intensified  that  the  Effects  of 
temperature  of  the  body  greatly  exceeds  the  high  and 
normal,  and  heat  exhaustion  follows.     Exces-  low  hu- 
sive  dryness  of  the  air  is  also  harmful.     It  in-  ^^  ^  ^' 
creases    evaporation,   the  skin    becomes    dry,  and    the 
mucous   membranes   of   mouth,    eyes,  and   respiratory 
passages    are    irritated.      Discomfort,    irritation,    and 
nervousness  follow.     The  best  working  temperature  is 
between  sixty-five  and  seventy  degrees  Fahrenheit,  and 
with  an  average  humidity  of  from  60  to  70  per  cent.     It 
matters  not  what  kind  of  work  is  being  performed,  every 
effort  should  be  made  to  avoid  extremes  of  heat,  cold, 
and  moisture. 

A   comfortable   temperature,   a   moderate   humidity, 
and  a  proper  circulation  of  air  are  necessary  factors  for 
efficiency.     A   slight   variation   in    the   tem-  Effects  of 
perature  of  in-coming  air  from  that  of  the  air  high  tem- 
in  the  room  stimulates  the  energies  of  workers,  p®^^*"^®- 
Working  in  a  high  temperature,  workers  soon  become 
listless,  careless,  and  slovenly  in  their  work,  all  of  which 


2i6  ECONOMICS  OF  EFFICIENCY 

have  an  important  bearing  upon  quality  of  work,  as  well 
as  output.  It  also  causes  drowsiness,  discomfort,  and 
headache,  leading  to  devitalized  bodies,  which  become 
easy  victims  to  all  kinds  of  diseases. 

Window  and  door  ventilation  should  be  carefully 
controlled.  If  rooms  are  hot,  and  workers  perspiring, 
it  is  a  great  danger  to  their  health  to  open 
fronf^^^  windows  and  allow  draughts  of  cold  air 
draughts  blow  through  the  rooms.  During  the  fall, 
and  heated  winter,  and  sometimes  spring,  workers  are 
forced  to  run  great  risks  of  ill-health  and 
sickness.  They  work  all  day  in  a  high  temperature, 
and  going  out  into  the  cold  air  to  go  to  their  homes  at 
night,  wet  from  perspiration,  and  usually  with  low 
vitaUty,  they  become  easy  preys  to  many  diseases. 
Proper  air  not  only  assures  better  health,  but  increases 
efficiency.  It  is  a  dollars-and-cents  proposition,  and 
every  employer  should  pay  particular  attention  and  spare 
no  expense  in  obtaining  proper  temperature,  humidity, 
and  circulation  of  air.  The  increased  efficiency  of  the 
working  force  repays  many  times  the  extra  outlay. 

Indoor  air  is  never  as  pure  as  that  on  the  outside, 
because  it  is  always  more  or  less  polluted  by  the  products 
Impurities  ^f  combustion,  by  the  decomposition  of  sub- 
of  indoor  stances,  and  by  the  wear  and  tear  of  tools, 
^-  machinery,    buildings,    and    materials.     The 

presence  of  individuals  always  tends  to  vitiate  the  air 
with  germs  and  organic  matter  from  their  skin,  mouths, 
lungs,  and  soiled  clothing.  These  impurities  may  be 
classified  under  three  heads,  dust,  fumes,  and  gases. 
Dust  is  an  enemy  of  efficiency  and  affects  individuals 
in  various  ways.  Dust  may  be  divided  into 
^^*g'  three  classes,  insoluble  inorganic,  soluble  in- 

organic, and  organic.     The  first  class  includes 
small  particles  of  metals,  minerals,  stone,  etc.      The 


WORKING  ENVIRONMENTS  217 

inhalation  of  these  dusts  causes  more  or  less  harm  to 
respiratory  organs.     The  inhaling  of  iron  dust,  it  has 
been  proven,  may  diminish  in  time  the  respira- 
tory efficiency  of  the  lungs  through  a  loss  of  inorganic, 
elasticity.     It  is  certain  that  the  inhalation  of 
these  inorganic  dusts  often  carries  germs  and  harmful 
bacteria  to  places  in  the  lungs  favorable  to  inoculation. 
Many  die  from  infectious  pulmonary  diseases,  not  know- 
ing that  the  breathing  of  dusty  air  has  been  the  cause 
of  the  infection.     The  exposure  of  workers  to  dust  is 
dangerous,  as  it  sooner  or  later  impairs  their  health  and 
efficiency. 

Soluble  inorganic  dusts,  as  the  name  implies,  com- 
prise particles  of  those  substances  which  are  soluble, 
and  if  taken  into  the  body  will  in  the  course 
of   time   be   absorbed,   as   arsenic,   mercury,  inorganic, 
etc.     Many  are  poisonous,  and  their  absorp- 
tion by  the  body  causes  serious  illness  and,  if  in  sufficient 
quantities,  death.     The  third  class  comprises  fine  par- 
ticles arising  from  flour,  grain,  cotton,  wool,   -. 
rags,  hides,  etc.     Many  diseases  are  traceable     ^^  ^  ' 
to  one  or  the  other  of  these  organic  dusts.     Many  dan- 
gers arise  from  dusts,  whether  of  the  one  or  the  other 
of  the  three  classes,  as,  firstly,  dusts  cause  irritation 
of  the  respiratory  passages,  eyes,  nose,  and  skin 
of  workers ;  secondly,  if  inhaled  and  lodged  in  (jus^ts!^  ^ 
the  lungs,  they  may  reduce  the  resistance  of 
these  organs  to  harmful  bacteria,  and  cause  workers  to 
become  easy  preys  to  tuberculosis  and  other  diseases; 
thirdly,  dusts  may  be  germ-laden,  and  carry  germs  not 
only  to  the  lungs,  but  to  other  parts  of  the  body ;  fourthly, 
many  are  highly  inflammable,  and  in  proper  propor- 
tions and  under  suitable  conditions,  are  subject  to  spon- 
taneous combustion. 

Many  conditions  and  circumstances  have  a  more  or 


2i8  ECONOMICS  OF  EFFICIENCY 

less  serious  influence  upon  the  health  of  workers,  but 
the  foremost  and  most  certain  of  serious 
^ckneS^*^  results  is  dust,  whether  organic  or  inorganic. 
Experts  have  discovered  that  sickness  and 
mortaHty  of  workers  are  high  or  low  in  almost  exact 
proportion  as  the  air  is  filled  with  or  free  from  dusts. 
We  also  know  that  the  proportion  of  deaths  from  tuber- 
culosis is  very  high  in  trades  with  continuous  or  con- 
siderable exposure  to  metalHc  and  mineral  dusts,  and 
the  same  is  true  of  mortahty  from  respiratory  diseases 
in  general.  Employers  should  reaHze  that  it  is  a  dollars- 
and-cents  proposition  to  keep  their  premises  as  free  as 
possible  from  dust.  Every  dollar  spent  in  so  doing  re- 
pays manifold  in  giving  better  health  and  increased 
efficiency  on  the  part  of  the  working  force.  From  the 
point  of  view  of  the  health  of  its  citizens,  it  is  the  right 
and  duty  of  every  state  to  pass  laws  to  prevent  workers 
from  working  in  dust,  and  in  a  more  or  less  germ-laden 
atmosphere.  The  better  health  assured,  the  loss  of  time 
on  account  of  sickness  saved,  and  the  general  increase 
in  efficiency  should  be  sufficient  inducements  for  dust 
prevention. 

The  problem  of  dust  prevention  is  more  or  less  diffi- 
cult. In  operations  accompanied  by  the  creation  of 
Means  of  dust,  every  effort  should  be  made  through 
dust  pre-  careful  arrangement  and  mechanical  devices  to 
vention.  reduce  the  dust  as  much  as  possible.  The  use 
of  hoods  for  dust-making  machines  is  absolutely  neces- 
sary and  inexpensive,  and  a  proper  ventilation  system 
greatly  assists  in  dust  removal.  Where  it  is  impossible 
by  hoods  or  devices  to  remove  dust,  and  it  is  in  sufficient 
quantities  to  be  injurious  to  workers,  respirators  and 
goggles  should  be  furnished  by  employers.  If  dust  is 
produced  which  is  highly  inflammable,  and  a  sufficient 
quantity  is  Hable  to  lead  to  spontaneous  combustion, 


WORKING  ENVIRONMENTS  219 

care  should  be  taken  to  introduce  into  the  room,  at 
certain  intervals,  a  certain  amount  of  moisture,  sufficient 
to  remove  the  danger. 

Extreme  care  should  be  exercised  in  removing  dust 
from  the  floors  and  walls.     The  old-fashioned  broom 
and  the  dry  duster  are  dust  movers,  and  not 
dust    removers.     They    scatter     the    germ-  move^dusT. 
laden  dust  throughout  a  room.     Dry  sweep- 
ing and  dusting  should  never  be  allowed  in  any  room 
where  people  are  working,  and  it  is  advisable  not  to  use 
either  in  any  case.     Dustless  brooms,  dustless  brushes, 
wet    sawdust,     sweeping     compounds,    hygienic    floor 
brushes,  vacuum  cleaners,  and  numerous  preparations 
for  dust  removal  are  available  and  cheap,  and  should  in 
every   place    replace    the    corn    broom,    cloth,    feather 
duster,  and  mop  and  pail. 

In  many  places,  offensive  fumes  and  gases  are  produced 
in  the  making  of  the  product  manufactured.     Every 
effort  should  be  made  through  careful  arrange- 
ment, and  mechanical  devices  to  reduce  the  ^^^^^^^^ 


free  discharge  of  these  gases  to  a  minimum. 
Frequently  discharge  of  gas  may  be  prevented  by  proper 
covers  for  vats  and  vessels,  and  there  are  in  the  market 
many    ventilating,    condensing,    and    burning    devices. 
Where  it  is  impossible  to  prevent  the  presence  of  gas  or 
fumes,  respirators,  goggles,  and  sometimes  gloves  and 
skin  protectors   should  be  used.     A  proper 
ventilating  system  is  a  great  help  in  lowering  ^^^g 
the  amount  of  fumes  and  gases  in  any  place 
where  these  are  produced.     The  reducing  of  these  in  a 
plant  to  a  minimum  should  be  compelled  by  statutory 
legislation.     Many    states    have    made    the    attempt, 
while  a  few  have  fairly  satisfactory  laws,  but  there  is 
still  the  need  of  much  improvement,  and  this  can  be  more 
easily  accomplished  with  the  cooperation  of  employers 


220  ECONOMICS  OF  EFFICIENCY 

and  employees.  It  is  an  important  public  health 
problem,  let  alone  its  effect  upon  efficiency,  and  either 
should  be  sufficient  inducement  to  insure  every  precau- 
tion to  protect  employees  from  poisonous  and  injurious 

fumes  and  gases.  Poisonous  fumes  and  gases 
workers!^      are  closely  related  to  inefficiency,   and  this 

fact,  if  no  other,  should  make  the  progressive 
employer  reahze  that  it  is  a  business  proposition  to  guard 
the  health  of  employees  from  them,  and  thus  increase 
their  efficiency.  Impure  air,  dust,  fumes,  and  gases  are 
arch-enemies  of  efficiency,  and  efficiency  cannot  be 
reached  in  any  plant  where  their  presence  is  found. 

Every  employer  should  be  made  to  reahze  that  it  is 
a  good  investment  to  study  carefully  his  own  plant 
Returns  for  with  special  reference  to  the  health  and  the 
proper  en-  safety  of  the  employees,  and  to  ascertain  and 
vironments.  ^^  provide  Conditions  under  which  his  par- 
ticular plant  may  be  economically  and  profitably  con- 
ducted. It  is  a  matter  of  common  experience  that  an 
intimate  relation  exists  between  the  conditions  which 
surround  a  worker  and  his  efficiency.  The  proper  mental 
attitude  of  a  worker  toward  his  work  is  best  generated 
and  maintained  where  best  working  conditions  are 
provided.  Bright  and  cheery  environments,  a  proper 
supply  of  pure  air,  no  dust  or  fumes,  proper  temperature 
and  humidity,  are  great  factors  in  making  workers  cheer- 
ful, happy,  and  contented.  It  is  poor  business  to  allow 
conditions  to  exist  that  cause  ill-health,  as  costs  are  kept 
high  through  diminishing  both  the  quaHty  and  the 
quantity  of  goods  produced.  It  cannot  be  denied  that 
a  happy  and  contented  worker  turns  out  better  and  more 
work  than  the  unhappy  and  discontented  one.  Em- 
ployers should  be  made  to  reahze  the  real  value  of 
workers'  physical  and  mental  well-being. 
The  contentment  of  the  employee  with  his  surround- 


WORKING  ENVIRONMENTS  221 

ings,  and  his  freedom  from  mental  depression  or  ill- 
health  are  factors  directly  affecting  his  out- 
put. All  physical  inconveniences  which  waste  proper  en- 
human  strength  and  effort,  as  foul  air,  poor  vironments 
light,  dust,  and  unsanitary  conditions,  are  ?^®  °^*®°  *° 
marks  of  inefficiency.  The  lack  of  proper 
hygienic  conditions  in  the  large  majority  of  plants  is 
due  to  ignorance  rather  than  to  neglect.  There  is  need 
of  further  development  of  scientific  knowledge  of  the 
requirements  of  the  human  system.  The  factors  which 
protect  health  and  give  safety  to  industry  are  just 
beginning  to  be  understood  in  this  country.  Manufac- 
turers and  employers  of  labor  cannot  be  blamed  for  not 
wanting  to  install  expensive  safety  devices,  ventilating 
and  dust-removing  systems,  and  other  methods  for 
protecting  and  promoting  health  and  comfort  unless 
they  can  be  shown  that  such  an  expenditure  is  a  profit- 
able investment.  With  reahzation  of  the  fact  that  the 
increased  efficiency  obtained  will  repay  several  times 
the  expenditure,  and  an  understanding  of  the  demands 
of  the  human  body  for  health,  the  next  few  years  will 
see  a  rapid  improvement  in  air  conditions.  There  is  no 
reason  why  most  plants  cannot  be  kept  at  a  comfortable 
temperature,  with  air  containing  the  proper  percentage 
of  moisture,  and  at  the  same  time  free  from  dust  and 
impurities. 

QUESTIONS 

1.  Why  is  health  an  essential  factor  in  efficiency? 

2.  What  is  the  importance  of  conservation  of  health?    Men- 
tion several  ways  of  conserving  health. 

3.  What  precautions  should  be  taken  in  illumination?     Give 
an  efficient  illuminating  system  for  a  plant. 

4.  What  are  the  advantages  of  electric  lighting?     Give   the 
requirements  of  a  good  electric  lighting  system. 

5.  How  may  the  eye  be  conserved?    What  are  the  effects  of 
eyestrain  ? 


222  ECONOMICS   OF  EFFICIENCY 

6.  What  is  air  conditioning?     Give  chief  factors. 

7.  What  is  ventilation?     Outline  a  good  ventilating  system. 

8.  What  precautions  should  be  taken  with  temperature  and 
with  humidity  ? 

9.  Give  proper  temperature  and  humidity  for  efficient  work. 

10.  What  are  the  impurities  of  indoor  air  ?  How  may  they  be 
eliminated  ? 

11.  What  are  the  dangers  of  fumes  and  gases?  What  pre- 
cautions should  be  taken  to  prevent  them? 

12.  Why  did  employers  so  long  neglect  proper  working  environ- 
ment? 

13.  What  is  the  proper  space  allowance  for  work?  Give 
requirements  of  the  Illinois  law. 

14.  What  is  the  relation  between  efficiency  and  pure  air? 

15.  Mention  various  injurious  lighting  conditions.  How  may 
they  be  remedied? 

REFERENCES 

Books 

C.  Baskerville,  "Municipal  Chemistry,"  Chs.  II,  XXII,  XXIII ; 
H.  K.  Benson,  "Industrial  Chemistry,"  Ch.  II;  D.  H.  Bergey, 
"The  Principles  of  Hygiene,"  Chs.  I-IV;  R.  C.  Carpenter, 
"Heating  and  Ventilating  Buildings,"  Chs.  II,  XIII,  XIV;  C.  E. 
Clewell,  "Factory  Lighting";  J.  C.  Duncan,  "The  Principles  of 
Industrial  Management,"  Ch.  XI;  Hough  and  Sedgwick,  "The 
Human  Mechanism,"  Ch.  XVI;  G.  M.  Kober,  "Industrial  and 
Personal  Hygiene,"  Part  I;  G.  M.  Price,  "Handbook  on  Sanita- 
tion," Chs.  II- VI ;  E.  H.  Richards,  "  Conservation  by  Sanitation," 
Chs.  I-IV;  Richards  and  Woodman,  "Air,  Water  and  Food," 
Chs.  I- VIII ;  Technology  and  Industrial  Efficiency,  pp.  442-449  ; 
W.  H.  Tolman,  "Social  Engineering,"  Ch.  Ill;  Tolman  and 
KendaU,   "Safety,"   Part  III. 

Articles 

M.  C.  Albright,  "Doing  Away  with  Dark  Corners,"  Factory, 
Vol.  10,  pp.  348+  ;  W.J.  Bitterlick,  "A  Successful  Factory  Drinking 
Water  System,"  Industrial  Engineering,  Vol.  13,  pp.  388-389; 
I.  Clark,  "Norton's  Company's  Medical  Department,"  Human 
Engineering,  Vol.  I,  pp.  230-240;  C.  E.  Clewell,  "Mercury  Vapor 
Lamps  as  Related  to  Shop  Lighting,"  American  Machinist,  Vol.  40, 


WORKING  ENVIRONMENTS  223 

pp.  711-716;  T.  Darlington,  "Sanitation,"  Proceedings  of  the 
First  Cooperative  Safety  Congress,  pp.  307-313;  E.  L.  Elliott, 
"Notes  on  Industrial  Lighting,"  Industrial  Engineering,  Vol.  13, 
pp.  102-105 ;  H.  L.  Estep,  "How  to  Light  the  Workroom,"  Sys- 
tem, Vol.  20,  pp.  614-623;  I.  Fisher,  "Industrial  Hygiene  as  a 
Factor  in  Human  Efi&ciency,"  Annals  of  the  American  Academy 
of  Political  and  Social  Science,  191 1 ;  O.  P.  Geier,  "  Shop  Sanitation 
and  Workmen's  Efficiency,"  Human  Engineering,  Vol.  I,  pp.  249- 
253  ;  LB.  Hiltz,  "  The  Conservation  of  Vision,"  Human  Engineer- 
ing, Vol.  I,  pp.  114-116;  S.  G.  Koon,  "When  Fresh  Air  Buys  More 
Work,"  System,  Vol.  23,  pp.  70-77  ;  S.  G.  Koon,  "Oxygen  Enough 
for  All,"  System,  Vol.  23,  pp.  411-417  ;  H.  F.  Porter,  "Moderniz- 
ing Methods  of  Sanitation,"  Factory,  Vol.  10,  pp.  332-334 ;  H.  F. 
Porter,  "Getting  Rid  of  Factory  Wastes," Factory,  Vol.  11,  pp. 
120  -h  ;  "  Principles  of  Industrial  Lighting,"  Industrial  Engineering, 
Vol.  XI,  pp.  171-177,  257-266,  349-356,  454-460;  "Sanitation,  a 
Method  of  Improving  Production,"  Industrial  Engineering,  Vol.  14, 
pp.  1-7  ;  J.  Sebroff,  "Drinking  Water  in  Industrial  Plants,"  Indus- 
trial Engineering,  Vol.  XII,  pp.  21-23, 102-105, 191-192,  Vol.  XIII, 
pp.  338-341 ;  W.  Talbot,  "The  Hygiene  Window,"  Human  Engi- 
neering, Vol.  I,  pp.  16-17  ;  W.  Talbot,  "Shop  Hygiene  as  a  Factor 
in  Efhciency,"  Human  Engineering,  Vol.  I,  pp.  215-226 ;  "Uncon- 
sidered Aspects  of  Ventilation :  Humidity  the  Principal  Factor," 
Scientific  American  Supplement,  Vol.  73,  p.  247 ;  C.  E.  A.  Wins- 
low,  "Ventilation,  Air  Space,  Humidity  and  Temperature," 
American  Labor  Legislation  Review,  Vol.  I,  pp.  11 7-1 20. 


CHAPTER  XI 

Welfare  Work 

Two  necessary  factors  demanded  in  every  employee 
for  efficiency  are  skill  and  health.     An  employee,  to  be 

efficient,  has  not  only  to  know  how  to  do  his 
o/heaUh^      work  in  the  best  way,  but  must  enjoy  good 

health.  If  a  worker,  skilled  or  unskilled,  is 
worried,  discontented,  or  in  poor  physical  or  mental  con- 
dition, his  efficiency  suffers.  From  the  time  of  the 
introduction  of  machines,  employers  knew  that  to  get 
best  results,  care  and  attention  as  well  as  skill  in  opera- 
tion were  absolutely  necessary,  yet  it  was  not  until  a 
comparatively  few  years  ago,  that  it  was  realized  that 
the  same  care  and  attention  were  necessary  with  em- 
ployees in  order  to  obtain  their  greatest  efficiency.  Great 
care  is  taken  of  athletes  because  their  success  depends 
upon  their  health  and  abihty  to  endure  strain.  The 
same  is  true  of  working  men.  Health  should  be  safe- 
guarded with  the  greatest  care  because  it  is  a  fundamental 
prerequisite  for  bodily  and  mental  achievement,  and  the 
attainment  of  success  and  happiness. 

According  to  a  statement  of  Professor  Irving  Fisher, 
about  three  millions  of  our  people  are  sick  at  all  times, 

and  it  is  claimed  that  one-half  of  this  can  be 
ricfaiesf       prevented.     The  number  of  workers  who  are 

slightly  ill,  ill  enough  to  reduce  efficiency  but 
not  enough  to  give  up  work  is  much  larger,  and  the  pres- 

224 


WELFARE  WORK  225 

ence  of  such  in  factories,  offices,  and  stores  is  a  real  drain 
upon  industry.  It  matters  not  how  true  and 
accurate  your  machine  is,  a  half-sick  operative  i*duste?.  °°^ 
cannot  get  the  best  results.  Suffering  from 
headache,  cold,  or  indigestion  does  not  allow  men  to  do 
as  efficient  work  as  if  they  were  well.  A  plant  with  a 
healthy  working  force  has  a  decided  advantage  in  the 
struggle  for  markets.  In  the  preceding  chapter,  it  was 
explained  how  health  is  improved  by  proper  lighting, 
temperature,  circulation  of  air,  humidity,  and  freedom 
from  dust  and  gases,  but  it  should  not  be  forgotten  that 
health  is  assured  by  proper  and  prompt  medical  service. 
Prevention  is  better  than  cure,  and  medical  service  has 
a  definite  place  in  keeping  men  at  a  high  point  of  effi- 
ciency. The  average  plant  has  a  well-equipped  repair 
shop  to  render  proper  attention  in  looking  after  machines 
and  keeping  them  in  the  best  repair,  but  only  a  small 
percentage  maintain  an  organized  department  for  keep- 
ing their  men  in  good  health. 

Sickness  may  not  be  severe  enough  to  keep  a  worker 
from  his  work,  but  nevertheless  it  has  a  direct  bear- 
ing  upon   his   efficiency.     It  may   cause   2- 
worker  to  remain  away  from  his  work,  and  service, 
the  loss  in  this  case  is  greater.     Workmen 
should  be  instructed  by  a  doctor  or  a  nurse  as  to  how  to 
prevent  sickness,  and  should  receive  prompt  and  effec- 
tive treatment  in  case  of  sickness.     A  medical  Medical 
department  should  have  its  place  in  every  depart- 
business   enterprise.     It   has   five   important  °^®"*^- 
functions    to    perform:     the    physical  examination  of 
every  employee ;    the  maintenance  of  health  in  a  work- 
iner  force ;   the  prescribins:  and  sometimes  the  „     ^. 

,.^  '  r  A'   '         '     ^^  r  •     Functions. 

dispensmg  of  medicmes ;    the  care  of  acci- 
dents;   lastly,  attention  to  Hving  standards  at  home. 
Every  medical  department  in  a  large  plant  should 

Q 


226  ECONOMICS  OF  EFFICIENCY 

have  at  its  head  a  doctor  who  is  either  a  salaried  official 
Doctor  and  ^nd  devotes  his  entire  time  to  the  employees, 
nurse  in  or  who  makes  daily  visits  and  is  subject  to 
plant.  ^^Y\  at  any  time.     He  should  be  assisted  by  a 

nurse,  but  where  men  are  employed,  a  male  nurse  is 
preferable.  A  plant  employing  only  a  few  men  will 
not  find  it  profitable  to  have  a  nurse,  but  two  or  three  in 
a  vicinity  may  share  the  expense  of  one  to  devote  her 
entire  time  among  the  plants,  and  in  visiting  the  homes 
and  the  famiHes  of  the  workers.  A  small  plant  need 
not  have  a  physician  visit  the  place,  because  this  may 
be  too  expensive,  but  it  should  have  some  arrangement 
with  one  who  will  examine  workers  at  his  office,  and  pre- 
scribe if  necessary. 

A  large  plant  should  have  a  well- equipped  emergency 
hospital,   while   a   smaller   one   will   find   it    profitable 

to  have  a  small  room  fitted  out  for  emergency 
hospitd!^*^^     cases.     "First  aid  to    the  injured"    jars   or 

chests  should  be  found  in  the  emergency 
room,  and  if  the  plant  is  large,  several  should  be 
placed  in  convenient  places,  so  that  one  may  be  reached 
from  any  part  of  the  plant  without  trouble,  and  in  a 
very  short  time.  Provision  of  some  kind  for  emergency 
cases,  and  for  medical  care  and  inspection  of  employees, 
is  absolutely  necessary  even  if  only  two  or  three  men  are 
employed. 

Every  employee  should  undergo  a  thorough  physical 
examination,  and  the  results  should  be  tabulated  on  cards 
Physical  for  the  purpose  and  filed.  All  new  employees 
examina-  should  Undergo  a  similar  examination,  so  that 
^°^'  there  will  be  a  health-card  index  for  every  one 

in  a  working  force.  A  careful  medical  examination  of 
all  applicants  will  at  the  outset  eliminate  all  suffering 
from  any  infectious  or  contagious  disease,  to  which  it  is 
very  undesirable  to  expose  workers,  and  will  also  prevent 


WELFARE  WORK  227 

the  hiring  of  those  physically  unfit  for  work.  No 
employer  should  hire  a  worker  without  first  having 
a  thorough  physical  examination  made  by  a  medical 
doctor.  If  this  were  done,  it  would  be  a  ^ 
safeguard  to  the  healthy  workers,  and  would 
often  prevent  loss  from  having  workers  with  impaired 
health  trying  to  do  work  which  should  be  performed 
by  healthy  strong  men. 

If  defects  are  found  in  the  health  of  the  permanent 
working  force,   attention   should  be  given   to   remedy 
them,  and  examinations  should  be  made  at  Treatment 
regular  intervals  as  long  as  the  defects  last,  of  defects 
If  sHght  defects  are  found  on  the  physical  o^iieaith. 
examination  of  an  applicant,  and  this  is  the  only  objection, 
attention  should  be  given,  and  frequent  examinations 
made  until  good  health  is  restored.     Careful  study  should 
be  made  of  the  demands  of  each  position,  so  that  the  per- 
son who  fills  it  may  not  have  his  efficiency  impaired  by 
physical  or  mental  defects.     If  a  worker  is  found  who  has 
a  defect  which  impairs  his  efficiency,  continuation  at  the  old 
work  should  not  be  allowed.  If  the  defect  is  only  temporary, 
a  rest  of  a  few  days  or  a  few  weeks  may  restore  health, 
but  if  it  is  permanent,  another  position  should  change 
be  found  where  the  demands  are  such  that  the  of  work 
defect  will  not  interfere  with  efficient  work,  often  neces- 
If  a  person  is  suffering  with  asthma  and  is  ^^^^' 
working    amidst   dusty    surroundings,    a   new   position 
where  no  dust  exists  should  be  given  him.     Again,  if  a 
person  is  compelled  to  work  in  a  standing  position  all 
day  and  has  spinal  trouble,  a  new  position  should  be 
given  him,  where  it  would  be  possible  to  sit  the  greater 
part  or  all  of  the  time,  and  perform  his  work.     Great 
losses  arise  from  having  workers  perform  tasks  for  which 
they  are  not  physically  qualified.     Ill-health  in  any  form 
is   a    secret   force   working    towards   inefficiency,    and 


228  ECONOMICS  OF  EFFICIENCY 

frequently  can  only  be  detected  by  careful  medical 
examination.  The  goal  in  every  plant  should  be  to  have 
all  places  filled  by  workers  who  are  competent  to  per- 
form efficiently  the  tasks  to  be  performed.  This  demands 
medical  service,  and  such  is  an  absolute  necessity  where 
efficiency  is  the  goal. 

An  employer  should  insist  that  every  employee  consult 
the  plant  physician  or  nurse  at  the  first  symptoms  of 
Importance  iH-health.  It  is  frequently  hard  to  induce 
of  treating  an  employee  to  do  so,  because  he  does  not 
slight  ail-  realize  that  if  slight  ailments  are  taken  in 
°^®°  ^"  time,  it  will  often  prevent  the  possibility  of 

long  sickness  following.  Severe  sickness  may  frequently 
be  prevented  by  prescribing  at  the  first  symptoms,  and 
slight  ailments  if  neglected  often  develop  into  serious 
illness.  Colds,  sore  throats,  and  many  ailments  are 
contagious,  but  if  promptly  treated,  and  advice  given 
as  to  precautions  to  follow,  it  will  frequently  prevent 
their  spreading  throughout  a  working  force,  and  save 
many  dollars  from  loss  of  efficiency  of  those  affected 
and  attending,  and  from  those  suffering  from  severe 
cases,  and  kept  away  from  their  places.  Maintaining 
health  in  a  working  force  is  an  important  factor  in 
efficiency,  and  is  one  of  the  greatest  guarantees  of  regu- 
larity in  attendance  and  of  increasing  efficiency  by  keep- 
ing employees  in  good  health.  The  doctor  or  trained 
nurse  should  take  special  pains  to  instruct  employees 
how  to  prevent  sickness,  and  how  to  administer  prompt 
and   effective   treatment   during  incapacity. 

In  a  large  plant,  it  is  advisable  to  have  a  dispensary 
in   charge   of   a   nurse.      If   no    dispensary,    provision 
should    be    made    with    a   druggist  to   give 
ispensary.    gp^^-^^j^  rates  to  employees.     In  a  plant    dis- 
pensary,  drugs   and  medicines  should  be  given  gratis. 
If   expensive    drugs   or   medicines    are    required,    they 


WELFARE  WORK  229 

should  be  given  at  cost.     A  dispensary  is  inexpensive, 
and  proves   a  valuable  factor  in  increasing 
efficiency   by  assuring  better   health  in  the  ducTed.?^" 
working   force.      For   the   treatment   of  ac- 
cidents,  an   emergency  room   or  hospital  is  necessary 
in  every  plant.     All  injuries,   cuts,   scratches,  bruises, 
foreign  matter  in  the  eye,  sprains,  etc.,  should  be  given 
prompt  treatment.     If  so,  blood  poisoning  can  be  almost 
entirely  ehminated,  and  loss  of  time  and  of  efficiency 
from  accidents  greatly  reduced. 

Efficiency  of  body  and  of  mind  is  affected  by  home 
surroundings  and  conditions.     It  should  be  emphasized 
that  no  employer  can  afford  to  do  anything 
which  does  not  bear  directly  upon  securing  ^u^^ings" 
increased    efficiency    of    his    working    force. 
Anything  beyond  this  savors  of  charity,  and  is   inva- 
riably opposed    by    workers.     Charity    is    outside  the 
province    of    a    business    enterprise,    and    is 
bound  to  react  unfavorably  upon  its  success,  jn^res^^^  ^ 
Anything  that  increases  the  efficiency  of  the 
working  force  is  within  the  province  of  every  employer, 
and  should  be  of  special  interest  to  him.     The  problem 
of  efficiency  increases  the  sphere  of  activity  and  the 
interest  of   employers  in   their  employees  beyond   the 
plant,  to  their  lives  outside,  and  to  their  homes.    A  work- 
er's home  surroundings  react  upon  his  ways  of  thought 
and  of  working.     One  who  comes  from  a  slovenly  home, 
where  meals  are  badly  cooked,   sleeping  quarters  not 
properly  aired  and  ventilated,  the  house  in  a  Htter,  and 
things  always  in  general  disorder,  will  usually  be  a  slack, 
careless,    and   unsatisfactory   person.     The   home    sur- 
roundings of  employees  are  important  factors  in  effi- 
ciency, and  should  be  carefully  investigated  by  every 
employer. 

Workers  should  be  encouraged  to  Hve  healthy,  thrifty, 


230  ECONOMICS  OF  EFFICIENCY 

and  moral  lives  so  as  to  develop  into  strong,  happy, 
contented  working  men.  It  pays  to  have 
courage  '  ^  nurse  visit  the  homes  of  workers,  and 
proper  teach  their  wives  how  to  cook  food  properly, 

habits  of  ]^Q^  ^Q  keep  the  homes  sanitary  and  properly 
ventilated,  and  how  to  administer  simple 
remedies  in  case  of  slight  illness.  Many  employers 
provide  medical  care  for  the  famihes  of  their  workers. 
Word  comes  to  a  worker  that  a  member  of  his  family  is 
sick.  In  place  of  his  going  home,  a  nurse  is  sent,  and  he, 
knowing  that  a  competent  person  is  looking  after  the 
sick  member,  continues  his  work  as  usual.  Modern 
industry  demands  of  workers  a  good  physique,  as  no  work 
requiring  strength,  dexterity,  or  brain  power  can  be  per- 
formed efhciently  in  the  absence  of  physical  stamina, 
and  such  cannot  be  attained  with  malnutrition,  bad 
housing,  or  poor  sanitation.  No  employer  who  desires 
to  obtain  and  maintain  efficiency  in  his  working  force 
can  afford  to  tolerate  any  of  these  conditions  in  the 
homes  of  his  employees.  The  instructing  of  the  working 
force  in  how  to  Hve  so  as  to  attain  and  maintain  health 
is  an  important  problem  with  every  employer,  and  one 
which  cannot  be  neglected. 

The  personality  of  the  doctor  and  of  the  nurse  is  an 
important  consideration.  In  either  case,  the  person 
PersonaUty  should  be  agreeable,  sympathetic,  possess  a 
of  doctor  cheerful  disposition,  and  one  who  makes  you 
and  nurse.  £g^j  ^^^^  ^  great  interest  is  being  taken  in  you, 
and  in  whom  you  are  ready  and  willing  to  confide.  Such 
a  person  will  greatly  increase  the  efficiency  of  the  medical 
department,  and  v/ill  have  a  decided  influence  in  main- 
taining a  good  esprit  de  corps. 

The  maintenance  of  an  efficient  medical  department 
has  a  distinct  and  important  bearing  upon  the  effi- 
ciency of  a  working  force,  and  as  such  is  a  dollars-and- 


WELFARE  WORK  231 

cents  proposition.    Such  a  department  increases  efficiency 
in    various    ways,    some  of   which  are  as  follows :    it 
eKminates   all  who  are  absolutely  unfit   for  j^g^jjcai  de- 
work  ;  it  increases  the  efficiency  of  those  with  partment 
defects   by   changes   in   work,    and    by   care  ^P^  ^^- 
and  attention ;    it  brings  attention  to  those  "®°*^y* 
who  have  physical  defects,  which  if  not  cared  for,  might 
lead  to  physical  unfitness,  but  who  with  proper   care 
can  be  partially  or  wholly  restored  to  health ;  it  prevents 
sickness  by  giving  advice  to  well  employees,  and  by 
immediate  attention  to  slight  ailments;  it  reduces  loss 
of  time  due  to  sickness  or  accidents ;  it  reduces  accidents 
owing  to  the  fact  that  many  accidents  are  due  to  ma- 
chines  being   worked   by   physically   unfit   employees ; 
it  eKminates  loathsome  diseases. 

Many  large  enterprises  maintain  sanatoriums  in  the 
country  where  they  send  their  sick  employees.  A  week 
or  two  of  rest  in  a  sanatorium  will  frequently  Provisions 
restore  a  valued  employee  to  health  when  for  the  care 
neglect  might  cause  illness  of  long  duration,  ***  *^®  ®^*^^- 
or  result  in  some  dangerous  disease  frequently  causing 
death.  Thousands  of  deaths  occur  annually  due  to 
neglect  and  carelessness  in  not  paying  attention  to  sKght 
ailments  or  symptoms  at  the  proper  time.  Many  em- 
ployers are  not  able  to  bear  the  expense  of  private 
sanatoriums,  and  make  provision  with  public  ones  to 
care  for  all  cases  sent.  Frequently,  the  employer  bears 
all  the  expense  whether  the  sick  employee  is  able  finan- 
cially to  do  so  or  not,  but  in  some  cases,  the  employer 
pays  part  and  the  employee  part,  but  if  the  employee  is 
not  able  to  pay  his  share,  the  employer  bears  all  the 
expense. 

Proper  nutrition  is  essential  to  good  health,  and 
as  far  as  the  employer  is  concerned,  presents  two  prob- 
lems :  first,  wholesome  food  for  the  employee  and  his 


232  ECONOMICS  OF  EFFICIENCY 

family  in  the  home,  and  secondly,  lunches  during  the 

working  day.  The  importance  of  instructing 
Stion^^^'     ^^^  wives  of  employees  as  to  the  necessity 

of  obtaining  wholesome  food  and  properly 
cooking  it  is  not  widely  recognized  by  employers.  To 
insure  wholesome  food  at  low  prices,  many  employers 
of  large  working  forces  run  stores  and  sell  goods  at  a 

small  margin  of  profit.  Whatever  profits 
assure?         remain  at  the  end  of  the  year  are  given  to 

an  association  for  the  benefit  of  employees,  or 
divided  among  them  on  the  basis  of  purchases.  Some- 
times employees  form  cooperative  associations,  and  by 
buying  together  are  able  to  get  discounts.  Many 
employers  advise  their  unmarried  employees  where  to 
board  to  get  wholesome  food,  and  emphasize  the  effects 
on  health  of  irregular  eating,  imperfect  mastication  of 
food,  and  the  eating  of  indigestible  dishes.  Many  find 
it  pays  from  a  business  point  of  view  to  run  boarding 
houses  and  restaurants  for  unmarried  workers.  Board 
is  given  at  actual  cost,  and  frequently  at  the  bare  cost 
of  food  and  service,  the  building,  equipment,  and  other 
requisites  being  furnished  gratis  by  the  employer.  The 
obtaining  of  good  wholesome  food  by  workers  has  an 
important  influence  upon  health  and  efficiency,  and 
makes  it  a  business  proposition. 

Indigestion   has   a   direct  bearing  upon   health   and 
efficiency,  and  its  ill  effects  should  be  forcibly  impressed 

upon  every  employee.  The  loss  in  efficiency 
iS^ffe^cts.'''  due  to  this  trouble  amounts  to  milHons  of 

dollars  annually.  One  of  the  chief  causes 
of  indigestion  is  the  eating  of  cold  lunches  at  work- 
benches, or  hurriedly  bolting  down  a  lunch  at  home 

during  the  noon  hour.     Unless  a  person  gets 

a  good  substantial  lunch,  his  efficiency  must 
suffer  before  the  end  of  the  working  day.     Scant  and 


WELFARE  WORK  233 

cold  lunches  have  a  twofold  effect  upon  efficiency. 
Workers  become  hungry  long  before  closing  time,  and 
good  work  cannot  be  done  by  any  one  if  hungry.  The 
lunches  cause  indigestion,  and  this  impairs  efficiency 
during  the  entire  working  day.  Frequently  at  noon 
hour,  some  hasten  to  a  near-by  saloon,  drink 
a  glass  or  two  of  beer,  and  snatch  a  few 
morsels  of  food  from  the  free  lunch  counter,  while  others 
get  a  pint  or  a  quart  of  beer,  and  lunch  upon  that  and 
a  few  crackers.  The  free  lunch  in  a  saloon  is  unwhole- 
some and  indigestible.  Those  who  lunch  on  beer  and 
crackers  are  usually  hungry  by  the  middle  of  the  after- 
noon, and  famished  before  closing  time.  I  have  seen 
men  so  weak  from  hunger  an  hour  before  closing  time 
that  it  was  practically  impossible  for  them  to  do  half 
the  work  that  they  did  without  effort  during  the  early 
part  of  the  day.  It  is  a  proven  fact  that  where  men 
are  allowed  to  drink  a  quantity  of  beer  at  the  lunch  hour, 
it  has  an  important  bearing  upon  their  efficiency  imme- 
diately following.  Beer  in  any  quantity  causes  drowsi- 
ness and  Hstlessness,  and  is  a  great  barrier  to  efficiency, 
and  if  it  is  allowed  at  lunch,  it  should  be  only  in  moderate 
quantities.  From  the  foregoing,  it  is  readily  seen  that 
the  lunch  problem  is  a  serious  one  for  every  employer, 
and  its  successful  solution  adds  greatly  to  the  efficiency 
of  a  working  force. 

The  lunch  problem  has  during  the  last  decade  received 
considerable  attention,  and  in  thousands  of  enterprises 
throughout  the  country  some  provisions  are  interest  of 
made  to  guarantee  a  warm  and  wholesome  employers 
lunch.     Nevertheless,  there  are  many  enter-  "ii^Qc^es. 
prises  where  employees  are  compelled  to  eat  cold  lunches, 
and  are  still  allowed  to  patronize  the  free  lunch  counters 
of  the  near-by  saloons.     Many  started,  a  few  years  ago, 
the  practice  of  providing  free  coffee  and  a  place  to  warm 


234  ECONOMICS  OF  EFFICIENCY 

lunches.  The  experiment  proved  so  satisfactory  that 
to-day  a  great  many  furnish  good  wholesome  lunches  at 
cost.  A  restaurant  should  pay  not  in  direct  profits,  but 
in  increasing  the  efficiency  of  workers  during  the  last 
working  hours  of  the  day.  Scores  of  different  plans  are 
in  operation  for  helping  employees  get  good  warm 
Methods  lunches,  and  vary  all  the  way  from  a  cup  of 
for  assuring  warm  coffec  for  one  cent,  and  a  dish  of  soup  for 
proper  two  ccuts,  to  full  coursc  dinners.     A  common 

plan  is  where  the  employer  furnishes  a  room, 
Kghting,  heat,  and  equipment,  and  employees  are 
charged  for  the  actual  cost  of  food  and  service.  Some- 
times employers  take  entire  charge  of  the  management 
of  furnishing  lunches,  and  sometimes  this  is  left  to  a 
committee  of  employees.  An  employer  cannot  be 
expected  to  furnish  lunches  gratis,  but  it  always  pays 
for  him  to  bear  a  part  of  the  expense.  In  every  case, 
it  is  a  business  proposition  to  see  that  employees  get 
good,  wholesome,  warm  lunches.  Where  only  two  or 
three  are  employed,  a  small  gas  stove  or  an  electric  plate 
furnishes  a  satisfactory  cooking  utensil,  and  a  pound  of 
coffee  and  four  or  five  cans  of  condensed  milk  per  month 
will  give  a  warm  drink.  Employees  should  be  encour- 
aged to  bring  good  substantial  food,  and  warm  or  cook 
it  in  the  place.  The  total  outlay  amounts  to  a  few 
cents  per  month  for  the  employer,  and  gives  each  em- 
ployee a  warm  lunch,  and  not  only  increases  his  effi- 
ciency, but  creates  a  better  feeling  towards  the  business. 
Pure  drinking  water  is  as  necessary  to  health  as 
wholesome  food.  Many  factories  have  been  severely 
Pure  drink-  handicapped  by  having  a  large  number  of 
ing  water ;  employees  absent  on  account  of  sickness, 
its  impor-  and  on  investigation,  the  cause  was  found  to 
be  the  drinking  water.  Drinking  water  should 
receive  careful  and  constant  attention  so  that  the  health 


WELFARE  WORK  235 

of  the  employees  will  not  at  any  time  be  endangered. 
Whatever  imperils  health  is  of  the  greatest  importance 
to  an  employer,  and  it  is  a  business  proposition  to  pro- 
tect the  health  of  the  working  force  from  all  perils  and 
dangers. 

Drinking  water  comes  from  various  sources:   water 
supply  of   town  or  city  of  location;    wells;    springs; 
bays,  lakes,  and  rivers.     If  the  source  is  the  p^^  ^^^^^_ 
water  supply  of  a  town  or  city,  an  analysis  ing water; 
should  be  made  occasionally  for  impurities  itsimpor- 
or   bacteria   which   might    endanger    health. 
If  the  source  is  either  well  or  spring,  extreme  care  should 
be  exercised  and  frequent  analysis  of  the  water  made. 
Special  pains  should  be  taken  to  prevent  the  sources  of 
well  or  spring  from  being  polluted  by  sur-  drinking 
face  water  or  other  causes,  and  it  should  be  w^*®'^- 
frequently   cleaned   and   constantly   inspected.     Many 
plants  along  bays,  lakes,  and  even  rivers  get  Precautions 
drinking  water  from  these  bodies.     Pipes  are  to  assure 
laid  out  some  distance  from  shore,  and  the  good  water, 
water  is  pumped  to  the  plant.     Frequent  analysis  should 
be  made  of  the  water,  and  extreme  care  be  taken  to  see 
that  organic  matter  or  surface  water  does  not  pollute 
the  water   at   the  place  where  the  supply  is  drawn. 
Many  employers  take  further  precautions  by  filtering 
all  drinking  water.     Each  source  has  its  own  problem  to 
solve  in  guaranteeing  pure  drinking  water,  and  as  such 
should  be  carefully  studied. 

Drinking  water  is  supplied  to  workers  in  different 
ways :  pail  and  cup,  tank  and  cup,  faucet  and  cup, 
sanitary  fountain.  The  old-fashioned  wooden  pail  and 
tin  cup  are  germ  distributors,  and  a  menace  to  health. 
The  wooden  water  pail  is  a  relic  of  the  past,  and  no  enter- 
prising employer  should  allow  its  presence  in  his  plant. 
The  water  tank  and  individual  sanitary  cups  may  be 


236  ECONOMICS  OF  EFFICIENCY 

satisfactory  if  proper  precautions  of  cleanliness  are  taken. 
The  water  should  be  drawn  off  by  faucet,  and 
ing  water  ^he  tank  should  be  carefully  cleaned  every 
should  be  morning.  The  common  drinking  cup  should 
wwkirs  *°  ^^^  ^^  allowed  in  any  plant.  With  city  sup- 
ply, the  faucet  and  cup  are  the  old  means 
for  furnishing  drinking  water,  but  in  every  case,  individ- 
ual sanitary  cups  should  be  used.  The  ideal  drinking 
receptacle  is  the  sanitary  fountain,  of  which  many 
varieties  are  on  the  market  and  wherever  possible,  one 
should  be  used.  One  manufacturer  said  that  in  the 
saving  of  time  between  the  ordinary  drinking  cup 
and  the  fountain,  the  latter  paid  for  its  installation 
the  first  month.  Provision  should  be  made  for  re- 
ceiving waste  water,  and  it  should  not  in  any  case  be 
allowed  to  dampen  the  floor.  There  should  be  a  suffi- 
cient number  of  drinking  places  easily  accessible,  and 
convenient  to  all  sections  of  a  plant,  so  that  too  much 
time  is  not  lost  by  employees  going  and  coming  from 
getting  a  drink. 

Drinking  water  in  every  case  should  be  cool  and 
refreshing.  Precautions  should  be  taken  not  to  have 
Importance  the  water  too  cold  because  very  cold  water 
of  cool  increases  the  desire  for  it,  and  the  taking  of 

water.  quantities    into    the    stomach    is    injurious. 

Ice  should  not  be  allowed  to  float  in  drinking  water.  A 
water  tank  should  have  a  separate  compartment  for  ice, 
and  with  a  drinking  fountain  or  faucet  connected  with 
the  water  system  of  a  town,  or  with  artesian  well,  the 
water  should  be  made  to  flow  through  a  coil  of  pipes 
packed  in  ice.  A  cool  refreshing  drink  invigorates 
workers,  and  is  an  absolute  necessity  in  every  plant. 
Drinking  water  is  a  more  important  factor  in  efficiency 
than  the  average  employer  beheves.  An  abundant 
supply  of  pure,  cold,  sparkling  water  is  a  factor  in  effi- 


WELFARE  WORK  237 

ciency,  and  it  also  has  a  further  effect  of  fostering  a  better 
spirit  between  employers  and  employees. 

Even  to-day,  many  employers  consider  it  ridiculous, 
and  an  additional  expense  to  furnish  sanitary  lavatories 
and  washrooms.     If  men  wish  to  wash  be-  The  old 
fore  going  home,  or  before  lunch,  pails  of  water  lavatory  and 
are  obtained,  and  all  help  themselves.     Some-  washroom, 
times  towels  are  supplied,  but  ordinarily  men  use  hand- 
kerchiefs or  whatever  they  can  get.     Such  practices  are 
not  only  unsanitary,  but  are  a  menace  to  health,  and 
many  infectious  diseases  are  caught  from  wiping  on 
towels  used  by  many,  or  washing  in  the  same  water  with 
others.     Some  places  still  retain  the  old-fashioned  iron 
sink  filled  with  filth  and  germs,  and  one  or  two  rusty 
iron  or  tin  wash-basins.     These  are  conditions  no  better 
than  pails.     Lavatories  and  closets  are  still 
appalhng  in  many  enterprises.     Many  states 
have  considered  it  necessary  as  a  protection  to  health 
to  pass  strict  laws  governing  them.     In  spite  of  laws, 
many  are  simply  depositories  for  germs,  filth,  and  odors, 
so  nauseating  that  a  person  cannot  remain  long  in  one. 
Many  a  severe  case  of  sickness  is  traceable  to  infection 
received  in  a  dirty,  filthy  closet,  or  from  dirty,  filthy 
washing    facilities.     Hundreds    of    such    cases    occur 
annually,  and  they  cost  employers  thousands  of  dollars. 
Efficiency    and    health    should   be    sufficient 
reasons  for  sanitary  lavatories  and  washrooms,   g^ciency^ 
Cleanliness  and  sanitary  conditions  make  a 
closer  relationship  between  employees  and  employers, 
and  assist  in  creating  loyalty,  enthusiasm,  and  interest, 
essentials  for  efficiency  and  success  in  every  enterprise. 

Closets  should  wherever  possible  be  flush  and  sani- 
tary.     Urinals   should    be   kept   clean    and 
frequently  flushed  because  if  not,  they  will 
be  germ,  carriers.     Everything  should  be  kept  sanitary 


238  ECONOMICS   OF  EFFICIENCY 

and  clean.  Employers  find  that  where  clean  and 
sanitary  closets  are  furnished,  workers  take  pride  in 
them,  and  do  their  part  in  keeping  them  clean.  The 
closets  should  be  ample  and  distributed,  so  that  they  are 
easily  accessible  to  all  parts  of  a  plant. 

Washing  troughs  and  individual  wash  bowls  have  taken 
the  place  of  the  old  wooden  bucket.  Individual  bowls  are 
Washing  ^^^  most  sanitary  and  preferable.  Soap  and 
troughs  and  towcls  should  be  Supplied  by  the  employers, 
individual  and  cvcry  worker  should  have  his  own  indi- 
°^  ^'  vidual  closet,  with  a  shelf  in  it  for  towel  and 

soap.  It  is  dangerous  to  have  several  using  the  same 
towel.  Prevention  is  always  the  watchword,  and  is 
more  preferable  to  cure.  Many  employers  have  janitors 
to  look  after  washrooms,  and  matrons  in  the  case  of 
women.  The  washrooms  in  many  of  our  enterprises 
are  thoroughly  modern,  sanitary,  and  models  of  clean- 
liness. Such  washrooms  increase  efficiency  not  only  by 
protecting  health,  but  by  assisting  to  create  a  proper 
spirit  of  cooperation  among  the  laboring  force. 

Each  worker  should  have  an  individual  locker  in  which 
to  keep  his  clothing  and  other  personal  effects.     Lockers 

are  made  of  wood,  iron,  or  steel  wire,  but  the 
loctlis!"^      last    two    are    preferable.     They    should    be 

carefully  ventilated,  and  arranged  so  as  to  be 
near  heated  coils,  or  have  drafts  of  warm  air  pass  through 
them  in  order  to  dry  clothes  if  wet  on  going  to  work,  or 
working  clothes  if  damp  on  leaving  off,  at  the  close  of 
work.  Frequently,  work  is  of  such  a  nature  that  it  is 
necessary  to  work  in  difTerent  clothes  from  those  worn 
to  and  from  work.  If  a  change  of  clothing  is  necessary, 
both  men  and  women  should  have  their  own  dressing 
rooms.  In  many  plants,  dressing  rooms  are  absolutely 
necessary,  and  they  should  be  light,  cheery,  and  well 
ventilated. 


WELFARE  WORK  239 

Cleanliness  of  person  is  one  of  the  fundamental  laws 
of  health.  Many  employers  realize  this  and  furnish 
bathing  faciHties  for  employees.  Bathtubs, 
shower  baths,  and,  in  some  cases,  swimming  bat^g^^°^ 
tanks  are  found.  Many  employers  encour- 
age their  workers  to  take  frequent  baths,  and  furnish 
free  towels  and  soap,  but  they  must  take  their  baths  on 
their  own  time.  Some  of  the  more  progressive  employers 
allow  workers  to  take  baths  once  a  week  on  their  time, 
and  furnish  soap  and  towels.  Hundreds  of  plants  have 
shower  and  tub  baths  for  men,  and  tub  baths  for  women 
employees.  It  increases  cleanliness  at  home,  affects 
habits  of  living,  promotes  health,  and  creates  a  closer 
cooperation  and  loyalty  in  the  working  force  toward  the 
business  as  a  whole. 

Spitting  on  the  floor  is  a  filthy  habit  common  in 
many  places.     It  is  a  menace  to  the  health  of  workers, 
and  this  is  sufficient  reason  that   it  should 
not  be  tolerated.     Men  should  be  told  the  evil  of'iUting^ 
consequences  of  spitting,  and  should  be  warned 
against  its  practice.     Warning  signs  should  be  displayed 
in    conspicuous    places.     Cuspidors    filled    partly   with 
sand  should  be  placed  in  convenient  places,  and  care 
should  be  taken  to  have  them  cleaned  frequently. 

The   plumbing   connected   with   closets,   washrooms, 
and  urinals  should  be  regularly  inspected.     Frequently, 
employers  pay  dearly  for  faulty  plumbing  in 
having  a  large  number  of  their  working  force  piu^bhig. 
absent  on  account  of  sickness  due  to  it.     An 
epidemic  frequently  starts  from  a  leak  in  a  sewer  or  waste 
pipe  in  some  part  of  a  plant.     If  sewage  is  not  emptied 
into  a  municipal  system,  but  is  carried  some  distance 
and  allowed  to  soak  into  the  ground  or  emptied  into 
some  body  of  water,  extreme  care  should  be  taken  that 
it  does  not  in  any  way  menace  the  health  of  workers. 


240  ECONOMICS   OF  EFFICIENCY 

Organic  matter  should  not  be  allowed  to  collect  in  or 
near  a  plant,  because  it  may  endanger  the  health  of  the 
working  force. 

The  hour  at  lunch  if  used  advantageously  is  of  value 
in  maintaining  the  efficiency  of  the  working  force  during 
Rest  and  the  afternoon.  The  first  essential  is  a  whole- 
recreation  some,  warm  lunch,  and  the  second  is  rest  and 
rooms.  recreation.     A  rest  room  is  absolutely  essential 

with  a  working  force  of  women,  and  is  a  good  business 
proposition  with  men.  A  bright,  cheery,  cozy  room 
with  lounges,  easy-chairs,  a  piano,  a  writing-desk,  maga- 
zines, periodicals,  and  a  Hbrary  gives  opportunities  for 
rest  and  recreation,  and  makes  workers  more  efficient  for 
work  during  the  afternoon.  Where  the  work  is  exacting, 
many  employers  give  rest  periods  morning  and  after- 
noon. Rest  rooms  give  the  rest  and  the 
efficiency!  recreation  needed,  and  girls  who  become 
temporarily  ill  find  a  place  for  repose.  A  few 
pots  of  flowers  add  to  the  cheerfulness  of  a  room.  A  rest 
or  lounging  room  for  men  with  easy-chairs,  magazines, 
library,  games,  and  perhaps  a  piano  affords  an  oppor- 
tunity to  rest  weary  muscles  and  fatigued  brains,  and 
makes  men  better  fitted  for  the  work  of  the  afternoon. 
Rest  rooms  are  problems  connected  with  efficiency  and 
should  be  considered  as  such.  They  give  a  direct 
assistance  in  increasing  the  efficiency  of  the  afternoon, 
and  an  indirect,  in  helping  to  create  a  proper  attitude 
in  the  working  force  toward  the  business. 

In  order  to  assure  comfortable  homes,  many  employers 
build  houses,  and  rent  them  to  employees  at  a  sum 
Assistance  j^^t  sufficient  to  covcr  cxpenscs.  This  should 
in  procuring  not  be  confused  with  the  practice  found  in 
homes.  many  places,   where  employers  build  cheap 

houses  and  rent  them  to  employees  at  exorbitant  rents. 
The  aim  in  this  case  is  extortion,  while  in  the  former  it 


WELFARE  WORK  241 

is  to  further  assure  health,  comfort,  and  happiness  by 
giving  employees  cheery  and  sanitary  homes  within 
their  means.  Many  build  homes  and  sell  them  to  their 
employees  on  easy  installment  payments.  The  aim  is 
to  assure  more  comfortable  homes  in  the  first  place,  and 
secondly,  to  encourage  thrift.  Some  progressive  em- 
ployers, to  safeguard  the  health  of  their  employees,  have 
lodging  houses,  and  rent  rooms  to  the  employees  at  a 
rent  just  sufficient  to  cover  expenses  and  give  a  low 
interest  on  the  money  invested.  This  movement  is 
young,  but  it  will  not  be  long  before  employers  will 
reahze  that  it  pays  on  account  of  its  beneficial  effect 
upon  the  health  of  employees,  and  the  time  is  not  far 
distant  when  aJl  employers  of  large  numbers  of  men  and 
women  will  have  their  own  lodging  houses. 

The  cooperation  of  the  working  force  with  the  manage- 
ment is  absolutely  necessary  for  efficiency  and  success. 
An  employer  may  have  a  finely  equipped  welfare 
plant  with  the  best  possible  sanitary  and  work;  its 
hygienic  conditions,  but  if  his  laboring  force  "^po^tance. 
is  dissatisfied  and  discontented,  cooperation  is  impos- 
sible, and  the  result  is  greater  and  greater  inefficiency. 
A  satisfied,  contented,  and  healthy  laboring  force,  enthu- 
siastic in  cooperating  with  the  management,  and  work- 
ing with  only  one  aim,  the  welfare  of  the  business  as  a 
whole,  is  a  most  valuable  asset  of  an  employer.  Many 
employers  realizing  the  value  of  a  contented  and  satis- 
fied laboring  force,  and  its  important  bearing  on  both 
success  and  efficiency,  have  undertaken  many  kinds  of 
work  to  further  guarantee  and  assure  this  frame  of  mind. 
This  class  of  work  is  called  welfare.  Employers  who  have 
introduced  various  kinds  of  welfare  work  in  their  plants 
do  not  hesitate  to  declare  that  the  motive  for  so  doing  is 
purely  a  business  one,  as  it  results  in  a  better,  more 
satisfied,    and   more   efficient   laboring   force.     W^elfare 


242  ECONOMICS  OF  EFFICIENCY 

work  is  found  in  many  varied  forms.  The  character 
Varieties  of  ^^  ^^^  laboring  force  determines  to  a  certain  ex- 
weifare  tent  the  kind  of  work  that  may  be  success- 

work,  fully  undertaken  and  carried  on.     During  the 

past  few  years,  employers  have  been  taking  more  and 
more  interest  in  this  kind  of  work,  and  they  declare  that 
as  a  business  proposition  it  is  a  good  investment.  From 
the  success  of  the  past  few  years,  one  can  prophesy  a 
great  increase  in  this  kind  of  work  in  the  immediate 
future.  Some  forms  of  the  work  are  as  follows  :  benefit 
associations;  educational  work;  athletic  teams;  club 
houses ;  pubKcations ;  annual  outings  and  amusements ; 
clubs;    pensions;    suggestions;    savings;    vacations. 

Various  methods  are  in  practice  for  encouraging  and 
looking  after  the  various  forms  of  welfare  work.  Many 
How  to  large  corporations  have  special  departments 

manage  wei-  in  charge  of  managers  with  assistants  who 
fare  work,  ^gvote  their  entire  time  to  this  kind  of  work. 
In  many  cases,  other  work  is  assigned,  as  safety,  fire 
prevention,  and  sanitation.  Sometimes  a  special  person 
is  in  charge  of  welfare  work,  and  decides  what  should 
be  done  to  create  in  workers  a  proper  attitude  towards 
the  management  and  the  business  as  a  whole.  As  to  the 
kind  of  welfare  work  to  introduce  in  an  enterprise,  study 
should  be  made  of  local  conditions,  and  of  the  character 
of  the  working  force  in  general,  and  the  forms  of  welfare 
introduced  should  be  such  as  will  be  adaptable  and  satis- 
factory to  the  plant.  It  is  a  waste  of  money  to  intro- 
duce certain  forms  of  welfare  work  among  certain  classes 
Need  of  ^f  workers.  The  importance  of  welfare  is  daily 
competent  becoming  more  recognized,  and  the  welfare 
persons.  department  is  assuming  greater  and  greater 
importance.  In  small  enterprises,  the  work  is  as  impor- 
tant as  it  is  in  large,  and  should  be  placed  under  the  charge 
of  competent  persons,  and  time  should  be  given  to  look 


WELFARE  WORK  243 

after  it.  The  return  in  creating  a  better  spirit  of  the 
working  force  towards  their  work  repays  several  times 
what  is  judiciously  expended  in  welfare  work. 

A  welfare  work  that  is  rapidly  gaining  favor  is  the 
providing  of  assistance  to  workers  in  case  of  sickness  or 
accidents,  and  to  dependents  or  relatives  in 
case  of  death.     This  work  is  called  benefit,   ^o^c^ations" 
Benefits  may  be  of  different  kinds,   as,   for 
sickness  or  disability,  for  funeral  expenses,  or  in  case  of 
death,  a  small  amount  paid  to  family  or  near  relatives. 
Various  methods  are  in  practice  for  managing  the  work, 
but  the  usual  one  is  for  the  employees  to  form 
a  mutual  benefit  association,  and  to  manage  benefits, 
it    themselves.     An   official   of    the   business 
enterprise  is  often  the  custodian  of  the  funds,  but  this 
is  not  always  the  case.     Weekly  or  monthly  assessments 
are  levied,  and  are  usually  graduated  with  salary  or 
wages.     When  the  fund  reaches  a  certain  amount,  the 
assessment  usually  ceases  until  it  is  necessary  to  replenish 
it.     Frequently,  in  case  of  extraordinary  charges  due  to 
unusual  sickness  or  accidents,  increased  or  extra  assess- 
ments are  m.ade.     Joining  is  often  optional,  but  should 
be    compulsory.     The    management    sometimes    makes 
occasional  contributions,  but  usually  the  association  is 
self-supporting.     The    weekly    amount    paid    and    the 
length  of  time  of  payments  in  the  case  of 
sickness  or  accident  are  not  fixed,  but  vary  ^^^oi*! 

.  ,  .      .  n  ,  "^     manage. 

With  associations,   as  well    as   the    amounts 
paid  for  injuries,  accidents,  or  death. 

A  new  feature  in  benefits  has  been  introduced  recently 
in  a  few  large  enterprises.     The  management  insures 
employees  against  sickness  or  accident  in  an  Newfea- 
insurance     company.     The     premiums     are  turein 
usually  paid  by  the  employees,  but  sometimes  benefits, 
a  part  is  paid  by  the  management.     Benefits,  whether 


244  ECONOMICS  OF  EFFICIENCY 

from  local  mutual  associations  of  employees  or  from 
insurance  companies,  are  absolutely  necessary,  not  only 
as  a  protection  to  employers,  but,  more  so,  as  a  protec- 
tion to  the  employees.  Mutual  benefit  associations  have 
given  entire  satisfaction,  but  with  the  lowering  of  insur- 
ance rates  there  seems  to  be  a  good  opportunity  for  the 
growth  of  the  insurance  of  entire  bodies  of  workers  with 
regular  insurance  companies. 

Educational  work  in  practice  in  American  enterprises 
is  of  many  forms ;  as,  apprenticeship  schools,  lectures, 
Kinds  of  evening  classes,  sewing  and  cooking  classes, 
educational  the  teaching  of  Enghsh  to  foreigners,  and 
work.  kindergarten  classes  for  the  children  of  em- 

ployees. Apprenticeship  schools  occupy  such  an  impor- 
tant place  in  efficiency  that  they  are  considered  in  detail 
in  a  previous  chapter.  The  importance  of  lectures  is 
becoming  more  recognized.  The  illustrated  lecture  is 
used  with  great  effect  in  emphasizing  and  illustrating 
the  various  precautions  for  protection  against  accidents 
and  fire.  It  is  of  the  utmost  importance  in  instructing 
employees  how  to  care  for  the  body,  and  how  to  live 
properly.  Employers  employing  many  girls  frequently 
give  evening  classes  in  sewing  and  cooking,  and  some- 
times these  classes  are  provided  for  the  wives  of  employees. 
Where  many  foreigners  are  employed,  it  is  advantageous 
to  open  evening  classes  to  teach  the  EngHsh  language, 
and  simple  educational  subjects.  Some  employers 
have  kindergarten  classes  for  the  children  of  employees, 
but  this  is  rather  unusual.  The  kind  of  work  depends 
in  every  instance  upon  the  character  of  the  employees. 
Lectures  and  evening  classes  of  various  kinds  improve 
the  working  force,  and  assist  in  creating  and  fostering 
a  better  attitude  toward  the  management. 

It  is  a  common  trait  in  every  boy  and  man  to  have  an 
interest  in  athletics,  and  any  encouragement  on  the  part 


WELFARE  WORK  245 

of    employers    is    much    appreciated    by    employees. 

Wholesome  recreation  and  outdoor   exercise 

are  incentives  to  health  and  higher  efficiency,  o/a^etics 

Encouragement    is    given    in    various   ways 

from  contributing  to  support  a  team,  to  furnishing  grounds 

and  equipment,  and  giving  a  certain  time  for  practice. 

Baseball  is  the  favorite  game,  but  football,  tennis,  and 

cricket  receive  their  share  of  attention.     Finely  equipped 

gymnasiums  and  indoor  ball  courts  are  sometimes  found. 

Girls  usually  have  their  own  sports,  as  tennis,  basket 

ball,  etc. 

A  club  house  is  only  a  possibility  with  an  enterprise 
employing  a  large  number  of  employees.  Many  large 
corporations  have  built  and  equipped  fine  club 
houses  for  their  employees.  A  small  fee  is 
usually  charged  for  club  house  privileges,  and  the  deficit, 
if  any,  is  paid  by  the  management.  Wholesome  recrea- 
tion and  sport  are  furnished,  and  their  influence  upon 
employees  is  toward  creating  a  better  attitude  toward 
the  management,  and  a  better  frame  of  mind  for  work. 

Many  large  corporations  print  monthly  papers,  usually 
in  magazine   form.     The  papers   contain   articles   and 
news  of  interest  to  employees.     Every  em-  Monthly 
ployee  receives  a  free  copy,  and  it  helps  to  papers, 
arouse  an  interest  in  the  business. 

It  is  a  common  practice  for  business  enterprises,  large 
and  small,  to  have  outings  and  picnics,  and  to  provide 
various  forms  of  entertainments  and  amuse- 
ments for  their  employees.     Frequently,  the  ^^eation. 
great  events  are  the  annual  picnic  and  the 
annual  ball.     Entertainments,  dances,  and  concerts  are 
encouraged,  and   the  expenses  are  wholly  or  partially 
borne   by    the   management.     This    recreation    side    of 
welfare  work  is  important.     The  providing  of  proper 
and  wholesome  forms  of  amusement  works  to  the  ad- 


246  ECONOMICS   OF  EFFICIENCY 

vantage  of   employers,   in  promoting  enthusiasm  and 
loyalty  in  the  working  force. 

The  formation  of  clubs  is  an  important  duty  of  the 
person  in  charge  of  welfare  work.     The  working  force 

should  be  carefully  studied,  and  the  character 

of  the  work  of  clubs  formed  should  depend 
upon  the  character  of  the  workers.  Orchestra,  mandolin, 
and  various  musical  clubs  give  satisfaction  where  a  suffi- 
cient number  of  singers  and  musicians  can  be  secured. 

Chess,  whist,  bowling,  and  checker  clubs  are 

favorites  in  the  average  enterprise.  Many 
corporations  have  their  own  bands,  and  these  furnish 
music  on  special  occasions.  Frequently  the  main  work 
of  clubs  is  to  promote  sociability  among  the  working 
force.  Part  of  the  time  in  the  case  of  girls'  clubs  is 
frequently  given  to  sewing  and  cooking  classes,  and 
the  wives  of  the  employees  are  invited  to  join.  Literary 
^  and  musical  evenings  also  receive  attention. 

With  men,  smokers,  game  tournaments,  liter- 
ary meetings,  and  debates  give  satisfaction.  Consider- 
able discretion  should  be  exercised  in  choosing  the  activ- 
ities to  be  undertaken  by  a  club.  What  would  be  suc- 
cessful and  satisfactory  with  one  class  of  workers  would 
be  an  absolute  failure  with  another.  Success  depends 
in  a  large  measure  upon  the  discretion  of  the  welfare 
worker  in  choosing  the  work  that  will  be  appreciated 
by  the  workers.  The  club  is  very  valuable  in  creating 
a  better  spirit  towards  the  management. 

To  encourage  thrift  on  the  part  of  employees,  many 
employers   either  receive  savings  directly,   and  pay  a 

good  rate  of  interest,  or  encourage  the  forma- 
banks^^         tion  of  savings  associations,  and  supervise  the 

investment  of  their  funds.  Frequently,  em- 
ployees are  given  loans  at  low  rates  of  interest,  and  re- 
payment on  the  installment  plan  for  the  purpose  of  build- 


WELFARE   WORK  247 

ing  or  buying  their  own  homes.  The  employees  of 
many  enterprises  form  loan  associations,  and  money  is 
loaned  to  needy  fellow  workmen.  Encouragement  to 
save  and  to  own  homes  gives  a  better  contented  class  of 
workers,  and  the  provision  for  loans  to  the  needy  fre- 
quently protects  deserving  employees  from  loan  sharks. 
Many  employers  own  summer  places  where  their 
employees   are   sent  on  vacations  at  low  rates.     The 

rates  charged  are  just  sufficient  to  cover  ex-  „     ^. 

^,  ,  •'  ,  ,    Vacations. 

penses,  and  employees  are  assured  a  good 
healthy  outing.  There  are  a  few  instances  where  the 
expenses  in  the  case  of  employees  are  paid  by  the  man- 
agement, but  such  are  exceptions.  If  employers  do 
not  own  a  summer  place,  many  make  arrangements 
with  proprietors  of  suitable  places  to  take  their  em- 
ployees at  reduced  rates.  Such  an  interest  is  always 
appreciated  by  employees,  and  is  amply  repaid  by  their 
increased  loyalty  to  the  business. 

To  encourage  interest  in  work  and  business,  many 
employers  offer  prizes  for  suggestions  that  are  accepted 
and  adopted.     Suggestions  are  sought  for  dif- 
ferent  things,  as  improvements  in  methods, 
machinery,  and  equipment,  devices  for  the  protection 
of  employees  and  for  fire  prevention,  and  innovations 
that  might  increase  the  interest,  cooperation,  ^^^^ 
and  loyalty  of  the  working  force.     The  kinds 
of    suggestions    vary   with    different    enterprises.     The 
suggestion  system  encourages  employees  to  take  a  greater 
interest  in  their  work,  and  to  use  their  brains  to  devise  sug- 
gestions that  will  increase  the  efficiency  of  the  enterprise. 

Many  employers  believe  that  they  owe  their  employees 
who  have  devoted  their  lives  to  building  up  their  business 
enterprises  a  duty  to  assist  them  when  old  age  p     . 
or  incapacity  comes.     This  has  led  to  many 
voluntarily  pensioning   their   faithful   employees   when 


248  ECONOMICS  OF  EFFICIENCY 

they  reach  a  certain  age.  Railroads  introduced  the  pen- 
sion system  before  industrial  enterprises,  and  its  adoption 
by  the  latter  has  been  comparatively  recent.  When 
employees  know  that  their  employers  take  sufficient 
interest  in  their  welfare,  to  not  only  assist  them  to  save 
for  old  age,  but  to  further  assist  with  pensions,  it  pro- 
duces a  better  spirit  on  the  part  of  the  working  force 
toward  their  employers. 

Other  activities  in  behalf  of  employees  are  found. 

One  worthy  of  mention  is  where  employers  give  seeds, 

and  offer  prizes  for  the  best-kept   gardens, 

^i^es^*^^      lawns,  and  houses.     This  increases  pride  in 

bright,  neat,  and  cheery  homes. 

Efficiency  demands  a  healthy,  contented,  and  inter- 
ested working  force.  It  cannot  be  too  strongly  em- 
Effects  of  phasized  that  efficiency  demands  more  than 
proper  en-  the  physical  condition  of  employees,  but  also 
vironments.  ^Yieiv  general  attitude  toward  the  business 
and  their  employer.  The  good  health  of  workers  de- 
mands the  best  hygienic  and  sanitary  conditions  and 
surroundings  while  at  work  and  at  home,  and  proper 
habits  of  living.  The  protection  of  health  in  enterprises 
should  not  be  left  to  employers,  but  should  be  a  legis- 
lative requirement.  Every  state  should  have  strict 
laws  governing  the  hygienic  conditions  surrounding 
workers  at  work.  Employers  should,  from  the  fact  of 
increased  efficiency,  interest  themselves  in  the  home 
surroundings  of  workers  as  well  as  their  habits  of  Hving. 
Efficiency  makes  it  a  strict  business  proposition  for 
employers  to  protect  the  health  of  their  workers.  A 
contented,  satisfied  working  force  with  a  proper  attitude 
towards  work  and  employer  is  a  valuable  asset,  and  is 
essential  for  efficiency.  The  chief  purpose  of  welfare 
work  is  to  create  contentment  in  a  working  force  and 
a  proper  attitude  toward  the  management.     It  is  not 


WELFARE  WORK  249 

philanthropic,  nor  does  it  savor  of  paternalism,  but  is 
guided  solely  by  business  motives.     The  kind 
of  welfare  work  in  every  enterprise  depends  motive^^ 
wholly  upon  the  kind  of  work  performed,  and 
upon  the  character  of  the  working  force.      Discretion 
should  be  exercised  in  the  introduction  of  any  form  of 
welfare  work.     The  increased  efficiency  coming  from  a 
contented,  loyal  working  force,  with  their  hearts  in  the 
success  of  the  business  and  their  cooperation  in  every 
way  to  make  it  a  success,  is  sufficient  return  for  what  is 
spent  in  giving  pleasure,  recreation,  and  happiness  to 
workers. 

QUESTIONS 

1.  To  what  extent  is  sickness  a  drain  on  industry  ? 

2.  What  is  the  importance  of  a  medical  department  in  a  busi- 
ness enterprise  ?     Give  the  requirements  of  an  emergency  room. 

3.  What  is  the  importance  of  treating  slight  ailments  ? 

4.  What  is  the  relation  between  nutrition  and  efficiency  ? 

5.  Why  should  employers  pay  heed  to  the  home  surroundings 
of  their  employees? 

6.  Why  is  the  midday  lunch  an  important  factor  in  efficiency  ? 
Outline  a  plan  for  giving  cheap  and  wholesome  lunches  to  em- 
ployees. 

7.  Mention  the  various  ways  of  supplying  drinking   water. 
What  precautions  should  be  taken  to  assure  pure  water  ? 

8.  Why  should   employers  pay  particular  attention  to  lava- 
tories and  wash  rooms  ?     Give  their  effects  on  efficiency. 

9.  Mention  various  methods  of  teaching  cleanliness.     What  is 
the  importance  of  cleanliness  ? 

10.  What  is  the  relation  between   recreation  rooms  and   effi- 
ciency ?     What  is  necessary  for  a  good  recreation  room  ? 

11.  Mention  several  varieties  of  welfare  work.     How  is  welfare 
work  conducted  ? 

12.  What  are  benefit  associations?     Mention  various  kinds. 

13.  Mention  various  kinds  of  educational  work.     Give  impor- 
tance of  each. 

14.  Why  should  precautions  be  taken  in  deciding  the  character 
of  welfare  work  to  be  undertaken  ? 


250  ECONOMICS   OF  EFFICIENCY 

15.  Why  are  pensions  a  good  business  proposition?  Mention 
various  pension  schemes. 

REFERENCES 

Books 

E.  Cadbury,  "Experiments  in  Industrial  Organization,"  Chs. 
IV,  VII;  E.  W.  Cooke,  "Betterment";  L.  M.  Gilbreth,  "The 
Psychology  of  Management,"  Ch.  X ;  M.  L.  Goss,  "Welfare  Work 
by  Corporations";  E.  L.  Otey,  "Employer's  Welfare  Work"; 
W.  H.  Tolman,  "Social  Engineering";  Tolman  and  Kendall, 
"Safety,"  Part  IV;  G.  P.  Watkins,  "Welfare  as  an  Economic 
Quantity." 


WELFARE   WORK  251 

Articles 

O.  M.  Becker,  "How  to  Fix  up  a  Lunch  Room,"  Factory,  Vol.  V, 
pp.  28  +  ;  E.  Bjorkman,  "The  Unnecessary  Curse  of  Sickness," 
World's  Work,  Vol.  18,  pp.  11836-11842;  W.  H.  Cameron,  "Do 
Employees'  Benefit  Associations  Pay?"  Iron  Age,  Vol.  90, 
pp.  1090-1091 ;  W.  L.  Chandler,  "Benefit  Funds,"  System,  Vol.  25, 
pp.  257-261 ;  W.  I.  Clark,  "  Keeping  Workmen  in  Repair,"  System, 
Vol.  24,  pp.  263-269;  W.  I.  Clark,  "A  Plan  of  Shop  Medical 
Service,"  American  Machinist,  Vol.  35,  pp.  1041-1042 ;  I.  Clark, 
"Medical  Treatment  for  Employees,"  Southern  Machinery, 
Vol.  27,  pp.  73-77;  "Enlightened  Selfishness  —  The  New  Cue  of 
Big  Business,"  Current  Opinion,  Vol.  56,  pp.  144  + ;  F.  M.  Feiker, 
"What  More  Than  Wages,"  Factory,  Vol.  6,  pp.  303  +;  W.  A. 
Grieves,  "Mutuality,"  Iron  Age,  Vol.  87,  pp.  908-911;  E.  K. 
Hammond,  "How  to  Fix  up  a  Lunch  Room,"  Factory,  Vol.  11,  pp. 
332  +  ;  W.  B.  Kaenpffert,  "Welfare  Work  in  Germany,"  Scientific 
American,  Vol.  106,  pp.  193-194;  R.  C.  Lewis,  "The  Emergency 
Room  of  the  Yale  and  Towne  Manufacturing  Company,"  Human 
Engineering,  Vol.  2,  pp.  1 29-131 ;  Wm.  O'Neil,  "The  Recognition 
of  the  Surgeon  in  Industrial  Operations,"  Proceedings  of  the  First 
Cooperative  Safety  Congress,  pp.  291-297  ;  H.  F.  J.  Porter,  "How 
Suggestion  Systems  Work  Out,"  American  Machinist,  Vol.  35, 
pp.  371-373 ;  H.  F.  J.  Porter,  "A  Clothes'  Closet  for  Each  Work- 
man," Factory,  Vol.  11,  pp.  27  +  ;  H.  F.  J.  Porter,  "Industrial 
Betterment,"  Gassier,  Vol.  38,  pp.  303-314;  D.  C.  Shafer, 
"Keeping  Employees  in  Good  Trim,"  Factory,  Vol.  5,  pp.  148  +; 
C.  A.  Tupper,  "Welfare  Work  in  German  Industries,"  Iron  Age, 
Vol.  89,  pp.  239-241. 


CHAPTER  XII 

Accidents 

During  the  past  century,  improvement  in  machinery 
progressed  at  a  rapid  rate,  and  is  a  chief  cause  of  our 
Machinery  industrial  development.  Decade  after  dec- 
andthe  ade  saw  more  intricate  and  complicated 
increase  of  machinery  introduced  into  our  factories, 
acci  ents.  ^^^  found  greater  numbers  of  men,  women, 
and  children  attending  thousands  of  machines.  The 
number  of  workers  annually  killed,  maimed,  and  in- 
jured has  increased  at  a  very  rapid  rate,  until  the  annual 
death  rate  in  the  United  States  due  to  industrial  acci- 
dents is  greater  than  the  number  killed  during  any 
battle  of  the  Civil  War. 

Every  industry  has  connected  with  it  a  certain  amount 
of  risk,  and  in  no  case  is  risk  entirely  absent.     Many  ac- 
cidents which  daily  occur  are  simply  and  solely 
acddents^      the  result  of  Conditions  beyond  human  con- 
trol,   and    inseparable    from    the    ordinary 
course   of   existence.     Accidents   may   be   divided   into 
two   classes :    first,   those  arising  from   causes  beyond 
human  control;  and  secondly,  those  due  to 
Tbie^^^^"        causes  preventable  by  human  agencies.     The 
first  class,  or  unavoidable  accidents,  cannot 
be  diminished  by  man,  but  the  second,  or  preventable 
accidents,  are  due  to  the  fault  of  employers  or  employees, 
Preventable    ^^^  ^^th.  due  care  and  precaution  may  be 
avoided.     The   prevention   of   accidents   has 
during  the  past  few  years  attracted  attention,  and  is 

252 


ACCIDENTS  253 

becoming  daily  more  recognized  as  an  important  factor 
in  efficiency.  Many  are  devoting  time  to  its  study, 
and  it  is  gradually  forging  its  way  to  the  foreground 
as  an  important  duty  of  every  business  man. 

The  Germans  lead  all  countries  in  the  collection  of 
accident  statistics.     According  to  their  statistics  of  a 
few  years  ago,  42.05  per  cent  of  all  accidents 
were  due  to  the  unavoidable  risks  of  industry,  Occidents 
and  57.95  per  cent  to  the  neghgence  of  em- 
ployers  and   employees.     During   the   past   few   years 
considerable  advancement  has  been  made  in  this  country 
in  the  taking  of  statistics,  and  several  states  have  passed 
laws  compelKng  the  accurate  keeping  of  sta- 
tistics of  accidents.     The  statistics  which  we  ^®5*^  °^ 

statistics. 

have,  appall  us  by  the  number  of  accidents 
which  occur  annually,  and  by  the  fact  that  a  large  per- 
centage is  due  to  neghgence  in  some  form  or  other  on 
the  part  of  employer  or  employee.  A  well-known 
statistician  is  well  within  the  hmit  when  he  declares 
that  50  per  cent  of  all  accidents  in  the  factories  of  Amer- 
ica are  preventable. 

Until  reHable  statistics  are  available,  people  cannot 
tell  the  great  economic  loss  from  accidents.  A  con- 
servative estimate  of  the  number  of  men 
killed  annually  in  industrial  accidents  in  the  acdd^ents°"^ 
United  States  is  five  thousand,  and  the  num- 
ber of  accidents  two  hundred  and  five  thousand.  Cal- 
culating the  economic  loss  on  the  basis  of  insurance 
tables  at  $7265  for  each  man  killed  and  $660  for  each 
man  injured  would  give  an  annual  loss  to  the  country  of 
more  than  one  hundred  and  seventy-one  milHon  dollars. 
When  we  hear  so  much  of  conservation  and  the  ehmina- 
tion  of  waste,  we  cannot  help  thinking  that  here  is  a 
neglected  field,  and  one  where  there  is  a  great  oppor- 
tunity to  assist  industry  and  humanity  at  large^^^ 


254  ECONOMICS  OF  EFFICIENCY 

carefully  investigating  accidents,  and  putting  into  prac- 
tice more  efficient  means  for  their  prevention.  Accident 
prevention  is  a  study  of  recent  development,  and  is  one 
which  should  receive  considerable  attention  in  the  future. 

It  is  surprising  how  stupid  the  average  American  em- 
ployer has  been  until  recently  to  many  of  the  essentials 
Profits  the  ^f  efficiency  and  to  important  factors  in  lower- 
goal  of  ing  costs.  The  American  employers  of  the 
business.  nineteenth  century  were  utterly  indifferent  to 
the  suffering,  mutilation,  and  even  killing  of  their  em- 
ployees. But  later,  when  it  was  brought  home  to  them 
that  accidents  represent  a  great  economic  loss  which, 
if  prevented,  would  assist  in  increasing  profits,  they  began 
How  to  to  take  an  interest  in  accident  prevention.  It 
arouse  em-  carries  home  the  fact  that  the  goal  of  business 
terestiii^^"  activity  is  profit  seeking.  In  the  struggle 
accident  for  profits,  the  business  man  is  heartless  and 
prevention,  cruel  to  those  around  him.  The  only  way 
to  soften  his  heart  to  the  interest  of  those  under  him  is  to 
make  clear  to  him  that  consideration  and  care  would 
affect  his  profits.  It  must  be  a  pure  business  proposition 
assisting  in  some  way  to  reach  the  goal,  profit  making. 
The  new  efficiency  movement  is  proving  to  be  a  boon 
to  industry  and  to  humanity  by  making  employers 
realize  that  a  proper  consideration  of  the  human  ele- 
ment is  the  chief  means  of  promoting  efficiency,  and  a 
great  factor  in  increasing  profits.  It  is  not  only  in  the 
interests  of  humanity,  but  of  profit  making,  for 
prevention  the  employer  to  use  every  means  in  his  power 
and  to  secure  prevention  against  the  manifold 
efficiency.  (^^^gers  to  life  and  limb,  which  are  the  accom- 
paniment of  modern  industrial  conditions.  It  is  only 
recently  reaHzed  that  to  protect  the  worker  against  the 
many    dangers   attending  every  branch    of    industrial 

'^tivity,  is  a  necessity  in  attaining  efficiency. 


ACCIDENTS  255 

All  accidents  cannot  be  prevented,  because  accidents 
in  greater  or  lesser  numbers  must  accompany  our  com- 
plex industrial  system.  Unavoidable  acci-  jji^jsjons 
dents  will  occur,  and  cannot  be  avoided,  but  of  the  study 
the  preventable,  which  total  in  many  indus-  of  accident 
tries  to  more  than  half  of  the  accidents,  can  p^®^®°^°^- 
be  avoided.  It  is  to  this  field  that  the  study  of  accident 
prevention  belongs.  The  new  study  may  be  divided 
into  different  branches ;  as,  —  first,  a  careful  study  of 
the  causes  of  accidents;  secondly,  the  development  of 
care  on  the  part  of  employers  and  employees ;  thirdly, 
the  use  of  safety  devices ;  and  fourthly,  the  proper 
design  and  construction  of  plant  and  apphances.  Every 
effort  should  be  made  to  find  out  how  an  accident  hap- 
pened, the  machinery  involved,  the  time  of  day,  and 
how  long  the  operative  had  been  working.  Each  acci- 
dent should  be  carefully  studied  to  ascertain  its  cause 
so  as  to  prevent  repetition.  When  the  cause  of  an  acci- 
dent is  discovered,  the  remedy  should  be  sought  and 
appHed  so  that  a  similar  accident  will  not  occur.  In 
the  field  of  accident  prevention,  too  great  em- 
phasis cannot  be  placed  upon  the  absolute  causes^ 
necessity  of  a  most  careful  investigation  into 
the  causes  of  accidents.  In  a  large  factory,  it  pays  to 
have  experts  devote  their  entire  time  to  studying  the 
causes  of  accidents,  and  devising  apphances  and  de- 
vices for  prevention.  In  a  small  enterprise,  this  work, 
if  not  carried  on  by  the  employer  himself,  may  be  as- 
signed to  one  of  the  foremen,  and  encouragement  in 
some  material  way  should  be  given,  so  that  he  will  be 
encouraged  to  exercise  his  best  ability  to  prevent 
accidents. 

Numerous  causes  have,  at  one  time  or  another,  been 
given  for  the  happening  of  accidents.  A  few  of  the 
most   common   are   ignorance,   carelessness,  unsuitable 


2S6  ECONOMICS  OF  EFFICIENCY 

clothing,  insufficient  lighting,  dirty  work  places,  defects 
of  machinery  and  structure,  not  proper  fire 
accidents.  precautions,  overcrowding  of  machinery  or 
materials,  fatigue,  poor  sanitary  conditions, 
slippery  floors,  walks,  or  stairs,  failure  to  use  safeguards 
provided,  and  intoxicants. 

Many  accidents,  and  often  those  of  a  serious  nature, 
are  due  to  the  ignorance  of  workers.  Workers  are 
permitted  to  work  on  dangerous  machinery 
gnorance.  ^j^j^q^^  either  proper  training  or  instructions. 
Education  is  the  chief  remedy,  and  every  workman 
engaged  in  work  around  machinery  should  receive  special 
instructions  in  how  to  avoid  accidents  and  in 
a  language  which  he  understands.  Special 
care  should  be  taken  in  the  selection  of  workmen  for 
machines,  and  minors  should  not  under  any  considera- 
tion be  allowed  to  work  around  dangerous  machinery. 
Strict  rules  should  be  formulated  in  what  should  be  done 
to  avoid  accidents ;  these  should  be  given  in  pamphlet 
form  to  all  workers,  and  the  foremen  and  bosses  should 
insist  that  they  be  frequently  read.  Severe  punishment 
should  be  imposed  upon  any  one  who  breaks  the  rules. 
Warnings  in  the  form  of  signs  should  be  distributed 
about  plants.  Bulletins  should  be  kept  in  conspicuous 
places,  and  upon  them  cuts  from  papers  of  how  accidents 
occur  and  general  information  about  the  occurring  of 
BuUetins  accidents  should  be  posted  from  time  to  time. 
and  All  workers  should  be  encouraged  to  read  the 

lectures.  bulletins.  Good  pictures  will  get  better  re- 
sults than  reading  notices.  Lectures  should  be  given 
occasionally  with  the  use  of  lantern  slides,  and  compul- 
sory attendance  should  be  insisted  upon.  If  these  few 
simple  precautions  are  taken  by  an  employer,  the  num- 
ber of  accidents  would  be  greatly  diminished. 

Carelessness  is  one  of  the  chief  causes  of  accidents. 


ACCIDENTS  257 

It  cannot  be  completely  blotted  out  of  human  nature,  but 
if  certain  precautions  are  taken,  accidents  from 
this  cause  may  be  greatly  reduced.     Chief  ^^H  ®^^" 
Factory  Inspector  J.  C.  Delaney  of  Pennsyl- 
vania dwells  at  some  length  in  his  annual  report  for 
1909  upon  the  danger  of  carelessness.      He  says  that 
although  workers  are  aware  of  unguarded  parts,   yet 
some  will  do  their  work  in  a  way  that  borders  on  criminal 
neghgence.     A  few  of  the  often  repeated  careless  acts 
which  he  mentions  are,  placing  a  ladder  upon  ^  . 
a  revolving  shaft  and  mounting  thereon  to  ad- 
just a  belt,  crawhng  under  machinery  in  motion,  reach- 
ing  across   dangerous  parts  of  machinery  in  motion, 
cleaning  and  oiHng  machinery  in  motion,  working  in 
baggy  sleeves  or  with  flying  tresses  of  hair  about  dan- 
gerous gearing  and  belting,  jumping  on  or  off  elevators 
in  motion,  and  adjusting  belts  upon  rapidly  revolving 
wheels    and    speeding    overhead    cranes.     He    further 
comments  that  as  long  as  neghgence  similar  to  this  oc- 
curs, accidents  avoidable  and  serious  will  continue  to 
happen  though  the  employer  of  labor  exerts  himself  to 
the  utmost  to  prevent  them. 

These  are  a  few  of  the  many  acts  of  carelessness  which 
are  seen  in  the  average  plant.  The  chief  remedy  is 
discipHne,  and  its  strict  enforcement.  Back  Rg^e^jjes  ■ 
of  discipline,  it  cannot  be  too  strongly  em- 
phasized that  success  depends  largely  upon  the  careful 
selection  of  superintendents  and  bosses,  and  infusing 
them  with  the  employer's  earnest  desire  to  avoid  acci- 
dents. This  sincerity  soon  makes  itself  felt  with  the 
workers.  Strict  factory  regulations  should  be  care- 
fully drawn  up  and  strictly  enforced.  Workers  should 
be  instructed  in  their  meaning,  printed  copies  should 
be  distributed,  and  the  management  should  insist  that 
they  be  frequently  read.     Every  infraction  of  the  regu- 


258  ECONOMICS  OF  EFFICIENCY 

lations  should  be  severely  punished.  Other  precautions 
that  prove  of  valuable  assistance  are  warnings  placed 
in  conspicuous  places,  bulletin  boards  with  clippings  of 
recent  accidents  in  different  parts  of  the  country,  pic- 
tures cHpped  from  papers  and  magazines  showing  acci- 
dents, and  lectures  with  lantern  sHdes  showing  how 
accidents  occur,  and  how  they  may  be  avoided.  Care- 
less operatives  and  violators  of  rules  should  be  discharged 
if  sufficient  warnings  fail  to  reform  them.  These  few 
inexpensive  precautions  will  prove  of  great  assistance  in 
cutting  down  expenses  through  the  prevention  of  many 
accidents. 

Hundreds  of  accidents  are  caused  annually  by  cloth- 
ing being  caught  in  moving  machinery.  The  wearing 
of  clothing  should  be  under  the  supervision  of 
°^'  the  employer,  and  should  receive  his  close 
attention.  A  loose  sleeve,  coat,  or  pant  leg,  a  flowing 
skirt  or  a  flying  cravat,  if  caught  in  any  part  of  moving 
machinery  may  cause  a  serious  injury,  and  sometimes 
death.  In  the  case  of  men  working  around  or  attending 
machinery,  a  tight-fitting,  closely  buttoned  waistcoat, 
with  close-fitting  sleeves  ending  at  the  elbow,  and  close- 
fitting  pant  legs  make  the  most  desirable  working  ap- 
parel. It  is  advisable  for  an  employer  to  de- 
dress^^  cide  upon  a  standard  suit,  and  insist  that  all 
working  men  wear  it.  Women  should  never  be 
allowed  to  work  around  high-speed  machinery.  A  stand- 
ard dress  consisting  of  a  tight-fitting  waist  with  close- 
fitting  sleeves  terminating  at  the  elbow,  and  a  close- 
fitting  skirt  should  be  worn  by  women  employees  in 
any  plant  where  they  are  around  machinery  in  motion. 
Women  working  around  machines  should  not  wear 
aprons,  and  should  have  long  hair  under  close-fitting 
caps.  These  precautions  are  simple  and  inexpensive, 
and   if   universally   adopted,   would   annually  prevent 


ACCIDENTS  259 

thousands  of  accidents,  and  save  many  thousands  of 
dollars  as  well  as  prevent  much  suffering  and  misery  on 
the  part  of  employees  and  those  dependent  upon  them. 

Poor  lighting  of  buildings  and  rooms  used  for  produc- 
tive purposes  is  responsible  for  many  accidents.     In 
many  plants,  men  are  forced  to  go  back  and 
forth    through    dark    passageways,    through  ughting. 
which  run  rapidly  revolving  shafts  and  high 
speed  belts.     A  false  step  usually  means  a  serious  acci- 
dent.    An    abundance   of   Hght,    natural   or   artificial, 
should  be  furnished  in  every  part  of  a  plant.     Dirty 
windows  often  make  a  place  darker  than  need  be.     Sta- 
tistics prove  that  the  greatest  number  of  accidents  occur 
during   the   months   of   diminishing   light.     Even   if   a 
plant  has  good  natural  light  facihties,  provision  should 
be  made  for  the  providing  of  sufficient  arti-  Precautions 
ficial   light   on   short    notice.     Every    stair-  to  assure 
way,  hallway,  platform,  runway,  and  passage-  s^^®*^' 
way   should   be   suppHed   with   sufficient   light,    either 
natural  or  artificial,  to  enable  persons  to  see  distinctly 
where  they  are  going,  and  if  there  are  any  obstacles  in 
the  way.     During  cloudy  days,  natural  fight  is  frequently 
not  sufficient,   and   at  once,  artificial   fight  should  be 
turned  on.     In  fall,  winter,  and  early  spring,  oftentimes 
during   the   day,   artificial   light  is   necessary.     Proper 
fighting  is  not  only  necessary  for  accident  prevention, 
but  is  a  prime  necessity  for  efficient  work. 

Cleanliness  is  as  important  in  a  plant  as  in  a  home. 
If  tools,  waste  materials,  and  goods  in  process  of  manu- 
facture are  allowed  to  fitter  the  floor,  there  is  ^.  „  ,.„^„„ 

1  i    •      •  Cleanliness. 

always  danger  of  an  employee  tripping  over 
them,  and  being  injured  by  the  fall,  or  being  thrown 
against  moving  machinery,  which  invariably  means  a 
more  or  less  serious  accident.     Everything  in  a  factory 
should  have  its  proper  place.     Every  workman  should 


26o  ECONOMICS  OF  EFFICIENCY 

be  severely  disciplined  if  found  casting  tools  or  materials 
in  aisles,  under  moving  machinery  or  in  out-of-the-way 
places.  Order  is  the  first  law  for  efficient  work,  and 
where  there  is  order,  many  accidents  are  prevented. 

Machinery  and  structures  gradually  wear  out,  and 
often  unexpectedly  give  way  and  cause  accidents. 
Breaka  es     Breakages  are  frequently  caused  by  defects 

in  parts  of  machines  or  structures.  Extreme 
care  should  be  exercised  in  buying  machinery,  tools, 
equipment,  and  construction  materials  to  make  certain 

that  only  the  best  are  obtained.  Platforms, 
buying.         runways,  and  stairways  should  be  built  with 

extreme  care,  and  only  the  best  materials  and 
workmanship  allowed.  As  a  protection  against  acci- 
dents, machinery  should  not  be  overfed,  or  machinery 

or  equipment  overloaded.     Frequent  and  close 

inspections  should  be  made  of  all  parts  of  ma- 
chinery and  of  equipment  to  discover  any  signs  of  wear, 
or  any  defects  which  may  not  be  apparent  at  first  sight. 
Certain  parts  of  machines  often  require  renewal,  and 
inspections  should  be  such  as  will  show  when  it  is  needed. 
Too  great  emphasis  cannot  be  placed  upon  the  necessity 
of  regular  and  frequent  inspections  by  competent  men 
of  all  equipment,  machinery,  and  appliances,  so  that 
defects  and  unsafe  conditions  may  be  discovered  promptly 
and  remedied.  The  losses  arising  from  interruptions  in 
continuous  production  due  to  breakages  amount  annually 
to  thousands  of  dollars.  The  buying  of  machines,  equip- 
ment, and  materials  of  the  highest  grade  and  quality, 
and  careful  inspection  are  essential  factors  in  a  plant  in 
preventing  accidents  and  in  lowering  costs  of  production. 
Fires  cause  many  accidents  and  injuries  as  well  as 
_.  destruction    of    much    property.     Accidents 

may  be  greatly  diminished  by  careful  con- 
struction  and   equipment   of   plants,    and   by   proper 


ACCIDENTS  261 

protective  measures  by  the  management.  Every  building 
used  for  manufacturing  or  business  purposes  should  be 
provided  with  a  sufficient  number  of  exits  and  fire  escapes, 
to  permit  prompt  egress  from  the  building  in  case  of 
fire .  All  doors  should  open  outward,  and  no 
door  should  be  locked,  bolted,  or  fastened 
while  employees  are  inside.  Fire  escapes  should  be 
secure  and  kept  clear.  Fire  drills  are  of  great  service 
in  preventing  panic,  and  occasional  drills  under  a  com- 
petent instructor  greatly  lessens  the  risk  to  life  in  case 
of  fire. 

Many  employers,  in  order  to  economize  space,  place 
machines  too  close  together.     The  width  of  passages 
between  machines  is  reduced  to  the  danger 
point.     A  certain  amount  of  space  is  necessary  ^^^  "®°* 
for  the  proper  operating  of  machines  and  the 
handling  of  materials,  and  if  this  is  encroached  upon, 
the  probability  of  accidents  is  increased.     Space  should 
not  be  economized  to  the  point  that  risks  to  workers 
are  increased. 

Slippery  floors  form  an  element  of  danger,  especially 
in  conjunction  with  unguarded  machinery.  Even  if  a 
slippery  floor  is  not  near  unguarded  machinery,   or     ^ 

•^  ,      ,   .   ,,         ^,^.        .  .  y    Slippery 

it  may  cause  a  bad  fall  resultmg  m  serious  m-   floors, 
jury,  and  this  is  particularly  so,  if  workers  are  stairs,  and 
carrying  heavy  loads.     Many  accidents  are  ^^ 
caused  by  slippery  treads  on  stairs.     If  treads  become 
slippery,  either  renew  or  cover  with  some  material  that 
does  not  become  slippery  from  wear.     All  floors  and 
walks  should  be  kept  in  good  condition,  and  free  from 
holes  into  which  a  person  may  step.     If  walks  or  stairs 
are  exposed  to  the  weather,  care  should  be  exercised  to 
prevent  them  from  becoming  covered  with  ice.     Hun- 
dreds of  accidents  occur  annually  from  falling  on  slip- 
pery walks  and  stairs.     Falls  from  ladders  explain  the 


262  ^ECONOMICS  OF  EFFICIENCY 

cause  of  many  hundreds  of  accidents  each  year.  Care 
is  not  taken  to  see  if  the  bottom  of  the  ladder  is  on  a 
shppery  floor,  walk,  or  ground.  Small  pieces  of  rubber, 
lead,  or  sharp  iron  points  fastened  to  the  ends  of  ladders 
are  effective  devices  to  keep  them  from  slipping.  All 
floors  should  be  as  free  as  possible  from  water,  oil,  and 
grease,  and  if  there  is  any  danger  of  slipping,  powdered 
rosin,  freely  used,  prevents  many  falls  and  accidents. 

Stairways  should  be  provided  with  handrails.  A 
handrail  has  often    saved  a   person   from  a  bad  fall. 

.  Stairways,  even  when  inclosed  by  side  walls, 

should  have  a  handrail  on  at  least  one  side, 
that  nearest  the  right  hand  of  the  person  going  down. 
Platforms  should  always  be  railed  and  skirted  at  the 
edge  to  prevent  materials,  tools,  and  persons  from  falling 
off.  Elevated  walks  and  runways  should  always  be 
railed.  In  every  case,  frequent  inspection  should  be 
made  to  see  that  supports  and  railings  are  always  in 
the  best  condition.  Many  serious  accidents  have  oc- 
curred from  persons  leaning  against  railings  which  were 
not  secure,  and  from  too  many  persons,  or  a  too  heavy 
weight,  being  allowed  upon  elevated  platforms  and  run- 
ways. 

It  is  advisable  for  every  employer  to  prohibit  absolutely 
the  drinking  of  any  alcoholic  drink  during  working  hours, 
Use  of  2.nd  to  discourage  its  use  outside  of  the  plant, 

alcohol  and  No  man  under  the  influence  of  liquor  should 
accidents.  -^^  allowed  in  a  plant,  much  less  to  work,  be- 
cause he  endangers  his  own  life  and  the  lives  of  his  fel- 
low workers.  A  man  who  is  usually  careful  is  apt  to 
become  reckless  under  the  influence  of  Hquor.  The 
regular  use  of  alcoholic  drinks  in  any  quantity  soon 
makes  a  worker  an  undesirable  person  in  a  laboring  force, 
and  unflt  for  efficient  work. 

It  has  been  proven  that  the  greatest  number  of  ac- 


ACCIDENTS  263 

cidents  occur  between  ten  and  eleven  thirty  in  the  morn- 
ing, and  the  hour  and  a  half  before  the  half 
hour  previous  to  quitting  time  in  the  after- 
noon.    During  the  last  half  hour  before  noon,  and  be- 
fore quitting  time,  the  final  spurt  reduces  danger.     Dur- 
ing these  hours,  there  is  the  greatest  fatigue,  and  it 
clearly   proves    the   relationship   between   fatigue   and 
accidents.     The  worker,  when  he  becomes  tired,  has  no 
longer  full  control  of  his  muscles,  and  loses  a  certain 
amount   of   alertness   and   watchfulness.     The   margin 
of  safety  in  modern  industry  is  small.     The  swift  ma- 
chinery of  modern  factories  requires  attendants  to  push 
and   guide  materials   in   close    proximity   to   merciless 
cutting  tools.     Many  types  of  machines  demand  work- 
ing so  close  to  dangerous  parts  that  the  misplacement 
of  the  hand  only  a  small  fraction    of    an  inch  means 
mutilation.     The  worker  is  at  first  cautious  and  atten- 
tive, and  avoids  danger  because  his  attention 
is  alert,  but  as  sensibiKty  decreases  at  the  acdd*erSs!° 
onset  of  fatigue,  his  attention  diminishes  and 
he  does  not  see  danger.     Reduce  the  alertness  and  the 
exactness  with  which  the  body  responds  to  the  demands 
of  its  labor,  and  by  just  so  much  you  increase  the  liability 
that  a  hand  will  be  displaced  that  fraction  of  an  inch 
which  means  mutilation. 

Long  hours  and  over-fatigue  are  two  important  factors 
of  inefficiency  and  leading  causes  of  accidents.     When 
a  worker's  health  and  strength  are  under- 
mined by  overwork,  he  becomes  incapable  of 
alertness,   attention,   and  watchfulness,   and  gradually 
becomes   defenseless   against  accidents.     Low  vitaHty, 
poor  health,  and  nervousness  make  an  em- 
ployee unfit  for  efficient  work,  and  if  allowed 
to  attend  or  work  around  moving  machinery,  the  chances 
of  accident  are  increased  at  a  rapid  rate.     Efficiency 


264  ECONOMICS  OF  EFFICIENCY 

forbids  long  hours,  and  the  undermining  of  the  nervous 
system  and  health  through  overwork,  and  if  its  demands 
are  followed,  there  will  be  a  great  decrease  in  the  number 
of  accidents. 

It  is  fatiguing  to  keep  attention  on  one  thing  for  any 

length  of  time,  and  how  much  more  so  must  it  be,  to 

closely  watch  rapidly  moving  machinery.     In- 

Effect  of  in-     .  .  •  i      •  • 

tense  work,  ^^^se  contmuous  work  mcreases  maccuracy, 
diminishes  alertness  and  watchfulness,  and  at 
the  same  time  increases  the  chance  of  deviation  of  a 
fraction  of  an  inch  in  the  movement  of  a  hand  which 
results  in  accident.  Employers  should  reaHze  that 
workers  should  be  protected  from  accidents  and  from 
working  to  a  point  where  health  is  impaired.  Extreme 
care  should  be  exercised  in  employing  as  attendants  for 
rapidly  moving  machinery  only  those  in  the 
rest^  ^  °  ^^^^  possible  health,  and  with  sound  nervous 
systems.  The  time  of  work  should  be  decided 
by  a  study  of  its  intensity.  A  worker  should  under  no 
consideration  be  allowed  to  attend  rapidly  moving  ma- 
chinery with  a  tired  mind  or  body.  Frequent  intervals 
of  rest  are  absolutely  necessary.  The  frequency  and 
the  time  depend  upon  the  character  of  work.  By  pre- 
cautions in  the  employing  of  suitable  employees,  and 
by  providing  proper  intervals  of  rest,  accidents  will 
not  only  be  prevented,  but  efficiency  will  be  greatly 
increased. 

Gases,  vapors,  dust,  and  smoke  increase  chances  of 
accidents.  Intense  heat  and  high  humidity  decrease 
Gas,  vapor,  alertness  and  watchfulness  necessary  for  the 
dust,  and  avoidance  of  accidents.  Proper  sanitary  sur- 
smoke.  roundings  are  of  greater  importance  to  good 
health  than  to  accident  prevention,  but  the  two  are 
closely  related,  because  whatever  lowers  the  vitality  of 
workers  decreases  their  power  to  avoid  accidents.     All 


ACCIDENTS  265 

unsanitary    surroundings    increase    the    probability    of 
accident  as  well  as  imperil  the  health  of  workers. 

^'Famiharity  breeds  contempt"  is  an  old  saying,  and 
no  greater  proof  of  its  truth  may  be  found  than  in  the 
carelessness  of  men  who  are  daily  in  close  j^en  grow 
proximity  to  dangerous  moving  machinery,  careless  of 
A  man  when  first  working  around  dangerous  <^^°g®^- 
parts  of  machinery  takes  pains  to  avoid  the  possibility 
of  accident,  but  after  a  time  becomes  so  used  to  his  sur- 
roundings that  he   unconsciously  takes  a  great  many 
chances  which  he  would  at  first  have  taken  pains  to 
avoid.     It  is  well  known   that  men  grow   careless  of 
dangers.     In  the  bustle  of  work,  men  forget  even  or- 
dinary precautions.     An  electric  circuit  marked  ''Dan- 
gerous, 2000  volts"  will  be  shunned  for  a  week,  but 
at  the  end  of  that  time  will  be  treated  as  contemptuously 
as  an  ordinary  door  battery.     The  condition 
of  mind  which  does  not  heed  danger  may  be  preveS 
overcome  in  a  large  measure  by  rules,  cau- 
tions,  signs,    and   by   simple   protective   arrangements 
which  serve  to  call  attention  to  the  existence  of  danger. 
Careful  instruction  and  supervision  in   the  formation 
of  habits  of  carefulness  in  heeding  danger  is  the  chief 
remedy.     Rules   and   severe  discipline  when   they  are 
broken  are  necessary,  and  further  assistance  may  be 
given  by  placards,   signs,   bulletins,   and   lectures.     If 
these  precautions  are  followed,  men  will  become  accus- 
tomed to  taking  pains  to  avoid  dangerous  parts,  and  the 
constant  reminders  will  prevent  them  falling  into  for- 
ge tfulness,  and  taking  foolhardy  risks. 

The  greatest  thing  which  an  employer  may  do  to 
make  his  workers  as  safe  as  possible,  is   to  Necessity 
provide  adequate   safeguards   for   dangerous  of  safe- 
parts  of  machinery  and  equipment.     All  ma-  s^^^<^s. 
chinery  is  more  or  less  dangerous.     A  certain  number 


266  ECONOMICS  OF  EFFICIENCY 

of  accidents  are  unavoidable,  but  extra  precautions 
should  be  taken  to  lessen  the  avoidable.  It  is  a  cer- 
tainty that  a  large  number  of  accidents  would  not  occur 
if  machinery  and  surroundings  were  made  safe. 

Employers  differ  in  their  opinions  as  to  what  is  dan- 
gerous and  what  is  safe.  Whether  employers  scout  at 
The  old  ^h^  i^^^  ^^  safety  through  safeguards  or  not, 
view  of  they  should  be  made  by  law  to  safeguard  all 

safeguards,  dangerous  parts  of  machinery  and  plant  equip- 
ment. The  progressive  employer  provides  safeguards 
because  he  realizes  that  it  is  good  business.  They  are 
a  guarantee  of  continuous  production,  and  one  of  the 
factors  working  towards  higher  efficiency.  The  anti- 
quated employer  laughs  at  the  idea  of  protecting  a 
planer  and  declares,  "It  has  been  exposed  like  that  for 
years  and  I  have  not  had  an  accident."  Such  an  argu- 
ment is  nonsensical.  If  such  an  employer  will  not 
safeguard  his  machinery,  the  state  should  legally  force 
protection. 

Employers  should  be  required  under  severe  penalty 
to  equip  machinery  and  working  places  with  every  prac- 
tical safety  device  that  it  is  possible  to  secure. 
What  to         Successful  business  teaches  us  that  it  is  cheaper 

safeguard.  ^ 

to  cover  a  gear  than  to  pay  for  a  finger.  It 
complete  guards  were  provided,  so  that  every  acci- 
dent due  to  being  caught  in  moving  machinery  was 
avoided,  it  would  not  only  prevent  much  suffering, 
but  would  add  annually  millions  of  dollars  to  the  profits 
of  manufacturers.  The  proof  of  the  adequacy  of  a 
safeguard  is  its  power  to  prevent  accidents.  Safeguards 
are  usually  simple  devices  and  inexpensive.     A  question 

arises  as  to  what  is  to  be  safeguarded.  Mr. 
dlr's^ii^'t        Calder  gives  a  very  satisfactory  list,  which  is 

as  follows  :  all  engaging  toothed  or  other  gears, 
rolls,  drums,  and  sHdes  of  every  description  on  any  ma- 


ACCIDENTS  267 

chine;  the  spaces  between  fixed  and  moving  parts  of 
any  machine,  or  between  the  latter  and  the  structures 
near  it,  leaving  insufficient  working  clearance,  in  no  case 
less  than  eighteen  inches  for  any  person  employed  thereon 
or  near  it ;  pulleys  and  clutches  ;  belts,  bands,  and  driv- 
ing chains;  flywheels  and  starting  balance  wheels; 
shafting  and  spindles,  and  all  couphngs  or  projections 
thereon,  or  upon  reciprocating  or  other  moving  parts  of 
machines  ;  counterweights  and  balance  weights  and  their 
suspensions ;  the  actual  element  in  every  machine  which 
comes  in  contact  with  work,  and  cuts,  shears,  or  other- 
wise operates  upon  the  latter,  for  instance,  the  circular 
saw  blade  in  the  sawmill,  the  punch  and  die  in  the  press, 
the  revolving  cutter  in  the  milHng  machine,  etc.  In- 
sistence should  be  that  these  elements  be  always  guarded 
where  found,  unless  they  are  of  such  form  and  in  such  a 
position  as  to  be  as  safe  to  all  as  if  guarded.  This  gives 
a  good  working  category  of  machinery  risk.  To  this 
list  should  be  added  elevators,  common  utiHties,  and 
structures  in  power  generation  and  transmission. 

Safeguards  should  be  durable  and  easily  distinguish- 
able from  parts  of  a  machine  or  equipment.     A  device 
which  is  widely  used  in  Europe,  and  should  be  Drawing 
adopted  in  this  country,  is  to  paint  guards,  attention  to 
safety   devices,   and,  wherever   possible,    the  safeguards, 
moving   parts   of   machinery   bright   red.     This   is   an 
effective  way  of  drawing  attention  to  dangerous  parts. 

The  proper  guarding  of  all  dangerous  parts  is  the  de- 
signer's   duty.     Purchasers    should    insist    in    buying 
machinery  that  all  dangerous  parts  are  pro-  proper  time 
tected.     The  proper  time  for  providing  safe-  forprovid- 
guards  is  while  a  machine  is  in  the  building,  i^s  ^afe- 
because  here  it  may  be  done  with  the  least  ^^^  ^' 
effort  and  the  least  cost.     The  devising  of  a  guard  that 
will  least  interfere  with  the  function  of  a  machine  may 


268  ECONOMICS  OF  EFFICIENCY 

be  done  better  by  the  designer  than  by  any  one  else.  If 
dangerous  parts  are  not  safeguarded  in  the  making,  then 
it  falls  upon  the  user  to  protect  his  workers  by  various 
devices.  There  are  many  patented  safeguards  in  the 
market,  but  frequently  the  user  is  called  upon  to  fur- 
nish home-made  guards.  A  home-made  wire  screen  is 
as  effective  a  safeguard  to  a  wheel  as  an  expensive  one. 
It  is  not  necessary  to  have  a  safeguard  a  finished  piece 
of  work,  because  as  long  as  it  protects  that  is  all  that  is 
asked.  If  buyers  would  refuse  to  buy  machines  unless 
the  dangerous  parts  were  protected,  it  would  not  be  long 
before  only  machinery  with  all  dangerous  parts  properly 
safeguarded  would  be  found  on  the  market. 

Many  workmen  object  to  safeguards,  claiming  that 
they  are  a  nuisance  and  interfere  with  work.  Every 
Workers  Safeguard  should  be  so  designed  that  it  does 
and  safe-  not  interfere  with  the  function  of  the  machine, 
guards.  j£  j^-  (Jqcs,  a  Httle  study  will  devise  a  sKght 
change  so  that  work  will  not  be  interfered  with.  Fre- 
quently, workmen  objecting  to  a  guard  will  not  hesitate 
to  remove  it.  Men  who  have  worked  for  years  without 
guards  frequently  develop  a  spirit  of  bravo,  look  upon 
them  as  signs  of  weakness,  and  scorn  them  as  a  reflection 
upon  their  cleverness  to  avoid  accident.  When  safe- 
guards are  introduced,  workers  should  be  induced  to  use 
them.  They  should  be  made  to  see  that  their  purpose 
is  for  their  protection,  and  that  their  cooperation  should 
be  with  the  management  to  make  their  use  efficient  in 
preventing  accidents.  Inspectors  should  see  that  no 
guards  are  removed,  and  if  a  workman  is  found  removing 
one,  the  punishment  should  be  severe. 

The  furnishing  of  safeguards  will  not  assure  preven- 
„        ,.         tion  of  accidents  unless  employees  cooperate 

Precautions 

fully   and   wilHngly   in    the    effort    to    pro- 
tect them.      Workers  should  feel  that  all  precautions 


ACCIDENTS  269 

taken  for  safety  are  for  their  benefit.  Many  safeguards 
must  be  removed  for  cleaning,  oiKng,  or  adjusting  ma- 
chines, and  workers  should  replace  them  as  soon  as  the 
work  is  finished.  If  a  safeguard  is  provided  and  left 
off,  there  might  just  as  well  be  no  safeguard.  Rules 
should  be  obeyed,  and  every  case  of  infringement  should 
receive  prompt  and  severe  discipHne.  Employees  should 
be  instructed  to  report  any  dangerous  places  or  signs  of 
weakness  in  any  part  of  the  equipment  or  machinery. 
A  reward  for  the  prompt  reporting  of  danger  will  often 
bring  attention  to  weakness  in  time  to  be  remedied  be- 
fore accident.  Every  employee  should  be  taught  to 
be  cautious,  and  be  encouraged  to  warn  fellow  workers 
of  dangerous  places. 

The  oiHng  of  machinery  and  shafting  while  in  motion 
should  not  be  done,  unless  it  is  absolutely  necessary. 
Employers  should  equip  all  parts  of  running 
machinery  with  automatic  oil  cups,  and  these  ^-^^^^  ^ 
should  be  filled  while  machines  are  at  rest.     If 
there  are  no  automatic  oil  cups,  and  it  is  necessary  to 
oil  machinery  and  shafting  in  motion,  certain  precautions 
should  be  taken.     Oiling  should  be  done  by  ex-  precautions 
perienced  men  who  wear  tight-fitting  clothes, 
and  use  long-necked  oil  cans  so  as  to  keep  their  hands 
out  of  danger.     With  shafts  and  machinery  a  few  feet 
above  the  floor,  special  platforms  should  be  built  for 
oihng  purposes.     Sometimes  ladders  are  used  in  oiKng 
shafting;  if  so,  special  care  should  be  taken  that  they 
have  special  hooks  at  upper  ends  to  fit  over  the  shafts, 
and  sharp  points  at  the  lower  to  prevent  slipping.     The 
safest  way  to  oil  machinery  and  shafts  is  by  automatic 
oil  cups,  and  these  should  be  introduced,  if  not  already 
in  use. 

Cleaning  machinery  while  in  motion  is  the  cause  of 
thousands  of  accidents.     The  chief  cause  of  danger  is 


270  ECONOMICS  OF  EFFICIENCY 

in  the  soft  materials  used  in  cleaning.  These  catch  easily 
Dangers  in  ^^  gears  or  in  running  parts  of  machinery, 
cleaning  and  draw  in  fingers,  hands,  and  sometimes 
machinery,  ^rms,  and  injury  follows.  Nearly  all  such 
accidents  are  preventable,  because,  with  few  exceptions, 
machines  may  be  cleaned  when  not  running  as  well  as 
when  in  motion.  If  cleaning  is  absolutely  necessary 
with  moving  machinery,  it  should  be  done  only  by  cau- 
tious and  experienced  men.  Under  no  circumstances 
should  minors  be  allowed  to  clean  or  oil  machinery  in 
motion.  With  precautions  in  cleaning  and  in  oiling 
machinery  and  shafts,  nearly  25  per  cent  of  industrial 
accidents  may  be  prevented. 

A  man  with  poor  eyesight  is  of  little  service  in  the 
industrial  field.     Hundreds  of  workers  yearly  lose  or 

impair  their  efficiency  by  accidents  impairing 
o/the^eyes     their  eyesight.     In  many  factories,   little  is 

done  to  protect  this  most  important  member 
of  the  human  body.  Workers  operating  machines  where 
particles  of  metal  or  hard  substances  are  being  cast  off 
or  likely  to  be  cast  off,  and  workers  in  rooms  where  small 
particles  of  hard  substances  are  flying  about,  should  have 
their  eyes  protected  by  spectacles  or  goggles.  Screens 
and  hoods  should  be  further  safeguards  on  grinding 
machines  and  cutting  machines  where  particles  of  hard 
substances  are  given  off.  Care  should  be  taken  in  the 
choice  of  goggles.  The  lenses  should  be  strong  enough 
to  stand  a  hard  blow,  as  many  serious  accidents  occur  by 
the  breaking  of  light,  thin  lenses.  The  goggles  should  be 
cleaned  daily,  because  this  avoids  many  cases  of  infection. 
Precautions  The  cleaning  may  be  done  by  either  dipping 
with  in  boiling  water,  or  immersing  in  an  antiseptic 

goggles.  solution.  A  promiscuous  use  of  goggles  should 
never  be  allowed  in  any  plant,  as  many  diseases,  as  tra- 
choma, iritis,  etc.,  are  transmitted  by  such  practices. 


ACCIDENTS  271 

Every  year  many  men  lose   their   eyesight  by  per- 
mitting other  workmen  to  remove  foreign  bodies  from 
their  eyes.     A  worker  on  getting  something 
into  his  eye  tries  to  remove  it  by  rubbing,  or  Action's 
by  the  use  of  a  dirty  handkerchief  or  rag  which 
happens  to  be  near ;  if  he  fails,  he  calls  to  a  near-by  worker 
to  remove  it.     Infection  is  often  transmitted  through  the 
use  of  dirty  handkerchiefs,  dirty  rags,  or  fingers  when 
used  to  push  back  the  eyelids,  and  frequently 
means  loss  of  sight.     In  every  plant,   there  ^g^e^*! 
should  be  proper  facihties  for  removing  for- 
eign matter  from  the  eyes,  and  some  one  trained  in  so 
doing.     Every  case  should  at  once  receive  proper  treat- 
ment and  then  there  is  Httle  danger  of  infection. 

In  the  United  States,  the  people  at  large  need  the 
creation  and  the  development  of  an  accident  preventive 
spirit.     In  Europe,  and  in  Germany  in  par-  Accident 
ticular,  accident  prevention  is  kept  constantly  preventive 
before  the  pubhc,   the  legislatures,   the  em-  ^p^"*- 
ployers,  and  the  workers.     It  is  taught  in  the  schools, 
and  colleges  devote  some  time  to  it.     Trade  and  technical 
schools  make  courses  on  accident  prevention  compulsory 
parts  of  their  curricula.     Insurance  rates  are  based  upon 
the  state  of  accident  prevention  found  in  the  individual 
plants.     The  political  and  industrial  leaders  unite  their 
strength  in  discovering  various  ways  of  extending,  and 
of  making  more  effective,  accident  prevention. 

In  this  country,  we  should  in  the  future  devote  more 
time  to  educating  the  people  in  the  science  of  accident 
prevention.     There  should  be  compulsory  courses  in  the 
prevention  of  accidents,  and  in  first  aid  to  the  injured,  in 
every  high,  trade,  and  technical  school.     Ere-  hq^  to  be 
quent  use  should  be  made  of  the  lantern  and  attained  in 
sKdes,  because  in  this  work  the  lantern  may  ^"^erica. 
be  used  effectively.     Advanced  courses  in  accident  pre- 


272  ECONOMICS  OF  EFFICIENCY 

vention  should  be  compulsory  in  every  engineering  school. 
Periodicals  and  newspapers  should  do  their  share  by 
contributing  numerous  articles  on  accident  prevention. 
More  attention  should  be  given  to  educating  the  em- 
ployee within  a  factory.  Care  should  be  taken  to  form 
with  every  employee  habits  of  carefulness,  and  of  acting 
unconsciously  in  looking  out  for  self  first,  and  the  other 
fellow  always.  Every  new  employee  should  be  given 
careful  instructions  as  to  the  dangerous  parts  of  machines 
and  of  every  part  of  the  plant  where  his  work  takes  him. 
He  should  not  be  allowed  to  take  his  place  in  the  plant 
until  he  is  thoroughly  familiar  with  his  work,  and  able 
to  protect  himself  against  accidents.  In  the  case  of  for- 
eigners, they  should  be  instructed  in  their  own  language 
in  the  proper  and  safe  ways  to  do  work.  The  aim  should 
be  to  inculcate  habits  of  caution.  Warnings  and  signs 
should  be  put  in  conspicuous  places  near  dangerous  ma- 
chines and  places.  Strict  rules  should  be  drawn  up 
governing  the  actions  of  employees  in  a  plant,  these 
should  be  closely  followed,  and  infringement  should  be 
severely  punished.  The  rules  should  be  printed  in  a 
small  booklet  and  each  employee  furnished  with  a  copy. 
With  foreign  employees,  the  booklet  should  be  printed 
in  their  language.  Bulletin  boards  should  be  placed  in 
conspicuous  places,  and  clippings  of  accidents  should  be 
regularly  posted.  Pictures  or  photographs  of  accidents 
posted  on  bulletin  boards  are  always  seen,  and  make  an 
impression.  Lectures  with  lantern  slides  should  be 
given  at  regular  intervals,  and  compulsory  attendance 
should  be  insisted  upon.  If  these  precautions  are  fol- 
lowed, they  will  soon  develop  habits  of  caution  and  a 
preventive  spirit  with  the  people  at  large. 

An  important  factor  in  teaching  accident  prevention 
in  Europe  is  the  accident  prevention  museum,  or  per- 
manent exhibition  containing  working  exhibits  of  safety 


ACCIDENTS  273 

devices  for  machinery  and  equipment  in  all  kinds  of  in- 
dustries.    Amsterdam,  Paris,  Vienna,  Budapest,  Munich, 
Berhn,  and  other  places  have  their  accident  Accident 
prevention  museums.     Most  of  these  are  kept  prevention 
up  to  date,  and  have  the  most  improved  safety  °i^seum. 
devices  on  exhibition  and  explained  thoroughly  at  regu- 
lar hours  each  day  by  competent  instructors.     This  is  a 
field  for  great  development  in  accident  prevention  in 
America.     Each  large  industrial  city  should 
have  its  accident  prevention  museum  of  work-  ^cTed°°" 
ing  exhibits,  always  up  to  date,  and  free  of 
admission  to  the  pubhc.     Illustrated  lectures  should  be 
given  from  time  to  time,  and  efforts  should  be  made  to 
get  the  working  people  to  attend.     The  cooperation  of 
employees  is  absolutely  necessary.     The  expense  of  the 
museum  should  be  borne  by  the  people  at  large,  and  form 
part  of  the  expenditures  of  the  town  or  city.     The  small 
cost  to  each  person  would  be  a  thousand  times  compen- 
sated by  its  influence  in  preventing  accidents. 

The  frequency  of  occurrence  of  accidents  in  any  enter- 
prise depends  largely  upon  the  character  of  supervision, 
and  the  management.  The  executive  head  -^ 
should  be  earnest  and  sincere  in  his  efforts  to  ment, 
prevent  accidents.  Great  care  should  be  bosses,  and 
exercised  in  choosing  superintendents  and  **^"^®^*^- 
bosses,  and  among  other  things  to  infuse  into  them  the 
earnest  desire  of  the  management  to  avoid  accidents. 
The  safety  of  employees  depends  in  a  large  measure  upon 
the  sincerity  and  the  earnestness  of  those  performing 
managerial  duties.  Every  factory  regulation  should  be 
carefully  followed,  and  every  precaution  to  avoid  accident 
should  be  taken  by  every  superintendent  and  boss.  This 
conduct  on  their  part  will  be  reflected  in  the  conduct  of 
the  workmen.  The  caution  exercised  by  those  in  author- 
ity will  unconsciously  be  imitated  by  the  workers,  and 


274  ECONOMICS  OF  EFFICIENCY 

will  be  a  strong  factor  in  instilling  habits  of  caution  and 
carefulness. 

Sickness,  accident,  and  death  are  three  grave  realities 
that  the  average  business  man  is  ill  prepared  to  meet. 
The  presence  of  any  one  means  increased  costs 
Emergency     ^^^  ^-j^q  temporary  lowering  of  industrial  effi- 
ciency.    It  pays  not  only  to  take  precautions 
to  prevent  the  occurrence  of  accidents,  but  to  provide 
facilities  for  prompt  and  proper  treatment  if  they  should 
occur.     One  of  the  best-paying  rooms  in  a  business  plant 
is  the  emergency  room  for  furnishing  first  aid  to  the 
injured.     It  pays  in  a  plant  employing  several  hundred 
hands  to  have  a  thoroughly  equipped  emergency  room 
and  to  have  in  attendance  a  trained  nurse.     If  the  fac- 
tory is  small,  a  room  thoroughly  equipped  to 
mpor  ance.    pj-^^-^g  ^j.g^  ^^^  ^^  ^^le  injured  should  be  pro- 
vided, and  a  number  of  men  trained  to  give  first  aid. 
There  should  be  at  least  two  men  in  each  department 
who  have  received  training  in  giving  first  aid,  so  that 
whenever  an  accident  occurs,  aid  will  be  near  at  hand. 

A  great  amount  of  knowledge  is  not  necessary  to  become 
expert  in  giving  first  aid.  A  competent  medical  doctor 
Giving  first  should  be  engaged  to  instruct  a  selected  corps 
aid  to  the  to  give  proper  assistance  in  case  of  accident, 
injured.  ^  fg^  Icctures  on  the  human  body,  and  how  to 
treat  hemorrhage,  bleeding,  fracture,  and  insensibihty, 
what  to  do  for  sprains,  burns,  and  scalds,  and  how  to 
remove  the  sick  and  the  injured,  provide  the  necessary 
training  and  knowledge  to  quahfy  to  give  first  aid.  The 
names  of  the  men  chosen  in  each  department  and  trained 
should  be  placed  in  prominent  places  in  the  department. 
Illustrated  lectures  on  giving  first  aid  should  be  given 
occasionally,  and  all  workers  should  be  compelled  to 
attend.  With  slight  cuts  and  bruises,  the  treatment 
given  by  the  trained  men  will  be  the  only  treatment 


ACCIDENTS  275 

necessary,  but  in  the  case  of  a  serious  accident,  the  first 
thing  to  do  is  to  send  for  a  doctor,  and  in  giving  first 
aid,  nothing  should  be  done  that  should  be  done  only  by 
a  doctor. 

An  emergency  room  is  an  absolute  essential  in  every 
plant.  If  one  is  not  installed,  no  time  should  be  lost  in 
doing  so.  The  expense  of  installation  will  Equipment 
soon  be  defrayed  by  the  advantages  which  it  of  emer- 
gives.  The  room  should  be  fitted  out  with  ^^^^^  ^^°^' 
the  latest  apphances  and  conveniences  for  giving  assist- 
ance in  case  of  accidents.  A  bed,  a  movable  stretcher, 
cushions,  glass  cabinets  completely  equipped  with  medi- 
cines, instruments,  cones  for  etherizing  purposes,  band- 
ages, plasters,  needles  for  sewing  up  wounds,  cocaine, 
absorbent  cotton,  and  everything  to  apply  when  aid  is 
necessary,  until  the  physician  arrives.  The  room  should 
also  be  furnished  with  heat,  electric  or  gas  light,  and  run- 
ning water.  When  the  doctor  arrives,  no  time  is  lost  in 
preparing  the  patient  for  removal  to  his  home  or  hospital, 
and  the  doctor  is  not  delayed  in  looking  for  apparatus 
which  might  be  needed  in  caring  for  the  injured. 

Cases  of  sterilized  bandages  should  be  placed  in  con- 
venient places  in  various  parts  of  a  plant,  but  when- 
ever possible,  the  injured  person  should  be 
treated  only  in  the  emergency  room.     Certain  wf.^*^«„x 

•^    .  T         11  -n  1  jars  in  plant. 

cases  may  arise  when  bandages  will  be  neces- 
sary at  once  and  before  removal.  In  every  case,  extreme 
care  should  be  taken  to  prevent  infection,  and  every  in- 
jured person,  it  matters  not  how  slight  the  injury,  should 
be  treated  whenever  possible,  in  the  emergency  room. 
Even  a  slight  cut  or  scratch  should  not  be  neglected,  and 
the  person  should  go  at  once  and  receive  proper  treat- 
ment. It  is  not  unusual  to  find  some  of  the  best  me- 
chanics absent  for  several  days  as  a  result  of  infection 
caused  by  slight  cuts  or  bruises.     A  properly  equipped 


276  ECONOMICS  OF  EFFICIENCY 

emergency  room  with  an  efficient  man  in  giving  first  aid 
prevents  such  absences,  and  the  loss  of  work  which  might 
result  from  men  being  laid  off  repays  several  times  the 
cost  of  installation. 

Good  medical  attendance  hastens  healing  and  saves 
many  a  worker  from  losing  time.  Proper  attention  to 
Gains  from  bad  wounds  frequently  saves  hands,  fingers, 
medical  and  feet.  An  injured  person  should  be  re- 
attendance,  quired  to  avail  himself  of  the  facilities  provided 
for  treatment  of  injuries.  Slight  injuries  and  bruises 
which  in  the  past  were  neglected,  are  in  the  progressive 
plant  given  careful  attention.  Business  men  are  more 
and  more  reahzing  that  money  expended  in  providing 
treatment  for  the  injured  is  not  only  the  best  kind  of 
investment,  but  essential  in  an  efficient  plant.  Immediate 
attention  to  all  injuries  saves  much  suffering,  many  limbs 
and  fives,  and  much  money. 

Men  engaged  in  hazardous  occupations  should  undergo 
careful  medical  examination  at  least  once  a  month.  If 
Health  of  ^^^^  ^^  strictly  followed,  it  prevents  many 
workers  in  accidents.  Workers  with  weak  nervous  sys- 
hazardous  tcms,  run-down  health,  or  over-fatigued  lose  a 
occupations.  ^^^.^^^^^  amount  of  control  over  their  muscular 
action,  and  are  more  subject  to  accidents.  If  any  of  the 
foregoing  causes  are  found,  workers  so  impaired  in  health, 
and  engaged  in  hazardous  work,  should  not  be  allowed  to 
continue  their  present  work.  A  rest  of  a  few  days  with 
a  prescription  usually  restores  the  health,  steadiness, 
and  the  former  efficiency  of  the  worker. 

No  person  under  legal  age  should  be  employed  in  a 
plant.  Where  age  limitation  is  not  provided  by  statute, 
Employ-  ^^  person  under  sixteen  years  of  age  should  be 
ment  of  allowed  to  operate  any  power  machinery,  and 
ciuidren.  where  close  attention  is  required  and  hazard 
comes  into  the  operation,  eighteen  years  should  be  the 


ACCIDENTS  277 

minimum  age.  The  employing  of  children  and  youths 
to  do  work  which  they  are  not  physically  or  mentally 
able  to  do  should  be  avoided,  because  their  youth  and  in- 
experience endanger  themselves  and  make  them  dan- 
gerous to  other  workers.  The  old  saying  that  an  old 
head  cannot  be  found  on  young  shoulders  applies  to  the 
fullest  extent  in  the  operating  and  the  attending  of 
machinery.  Accuracy,  precision,  alertness,  caution,  and 
discretion,  prerequisites  of  safety,  are  the  acquirement  of 
maturity,  and  cannot  be  relied  upon  to  any  great  degree 
in  childhood  or  youth. 

It  is  inconceivable  that  our  complex  industrial  organi- 
zation can  be  conducted  without  some  accidents  and  some 
fatalities.  Many  of  our  accidents  are  solely  j^^,  ^^ 
the  result  of  conditions  beyond  human  control,  state  to 
and  inseparable  from  the  ordinary  course  of  protect 
existence,  but  thousands  upon  thousands  of  ^°^ 
easily  preventable  accidents  occur  each  year,  and  it  is 
from  these  that  workers  should  be  protected.  It  is  self- 
evident  that  in  the  field  of  industrial  activity,  the  indi- 
vidual cannot  protect  himself,  and  it  is  the  duty  of  the 
state  to  step  in  and  protect  him.  Every  one  knows  that 
the  average  plant  is  more  safe  than  it  was  a  decade  ago. 
Many  plants  with  their  safely  protected  dangerous  places, 
and  precautions  taken  to  protect  workers  from  harm,  are 
equal  to  the  safest  protected  plants  of  Germany.  But 
there  are  thousands  of  employers  who  are  still  indifferent 
to  safety  devices,  and  that  is  one  of  the  reasons  why  we 
should  have  strict  and  severe  laws.  Statutes  should  be 
prepared  under  expert  advice  and  should  make  employers 
and  makers  of  machinery  responsible  for  the  guarding  of 
dangerous  parts  and  appliances  which  they  use  or  manu- 
facture. 

The  law  should  provide  an  efficient  factory  inspection 
department  which  should  be  a  division  of  the  labor  de- 


278  ECONOMICS  OF  EFFICIENCY 

partment.     The  number  of  inspectors  should  be  sufficient 

to  allow  thorough  inspection  of  plants,  and 
hTspeSon      ^^^  P^^  large  enough  to  get  competent  men 

to  perform  the  work.  The  inspectors  should 
be  appointed  on  merit  and  be  under  civil  service.  The 
law  should  insist  that  all  existing  factories  and  every 

new  factory  be  registered  with  the  factory 
^^cTed?^"       inspection  department,   and   that  employers 

report  to  the  department  every  accident,  the 
machine  or  appliance  involved,  cause,  hour  of  the  day, 
number  of  hours  the  person  had  been  working,  age,  sex, 
length  of  time  engaged  in  the  particular  work,  and  the 
precautions  taken  by  the  employer  to  protect  from 
accident. 

There  are  two  systems  of  dealing  with  employers' 
Habihty  for  injuries  from  accidents.  The  first,  which 
Systems  of  formerly  prevailed  in  all  industrial  countries, 
employers'  but  which  now  Only  survives  in  certain  states 
UabUity.  Qf  ^]^g  United  States,  is  the  law  of  tort,  or  the 
master  and  servant  principle  of  the  law  of  negligence. 
This  harsh  common  law  rule  is  that  no  damages  are  pay- 
able when  an  accident  is  caused  by  the  fault  of  the  in- 
jured workman,  or  of  a  fellow  servant,  or  by  the  unavoid- 
able risks  of  the  employment.  It  is  very  unjust  to  em- 
ployees, and  a  travesty  upon  justice  in  this  enHghtened 
age  of  ours.  All  industrial  countries  except  some  of  our 
states  have  recognized  the  injustice  of  this  law,  and  have 
passed  statute  laws  aboHshing  the  old  master  and  servant 
principle  when  deahng  with  industrial  and  other  acci- 
dents. The  principle  originated  in  primitive  times  of 
industry,  and  is  impractical  and  unjust  in  any  advanced 
industrial  system.  It  is  antiquated  and  savors  of  the 
days  of  primitive  industry. 

The  second  system  is  that  of  compensation,  which  in- 
cludes both  ordinary  compensation  and  its  complex  form, 


ACCIDENTS  279 

compulsory  insurance.  In  its  simplest  form,  it  is  a  liabil- 
ity to  pay  compensation  for  injuries  from  ac-  compensa- 
cidents  to  employees,  with  an  added  legal  obli-  tion  in 
gation  to  insure  its  payment.  This  is  the  only  accidents, 
just  way  of  deaHng  with  compensation  for  accidents,  and 
it  is  surprising  that  America,  one  of  the  most  enlightened 
countries  of  the  world,  should  be  so  backward  in  passing 
legislative  acts  enforcing  this  method  of  payment.  En- 
forced payment  for  injuries  and  death  due  to  accident 
will  more  than  anything  else  induce  the  employer  to 
adopt  better  safety  devices.  It  is  essential  that  the  re- 
sponsibility of  the  employer  be  fixed,  and  that  compensa- 
tion be  certain  without  expensive  litigation.  Every 
accident  incurring  suffering  should  be  fairly  and  promptly 
compensated  for,  without  having  to  wait  for  delays  and 
uncertainties  of  the  courts.  The  certainty  of  respon- 
sibiHty  fixed  with  the  employer,  and  the  certainty  of 
compensation  fixed  with  the  employee,  will  make  the 
employer  more  anxious  and  cautious  to  provide  safety 
devices  to  protect  his  employees.  The  compensation 
provided  should  cover  all  injuries  irrespective  of  em- 
ployer's or  employee's  negligence  except  where  injury  is 
self-inflicted.  The  compensation  should  be  fair  and  just 
to  both  employer  and  employee,  and  the  machinery  of 
awarding  should  be  simple  so  as  to  avoid  unnecessary 
delays  and  expense. 

Workers  appreciate  measures  taken  to  protect  them, 
and  respond  by  taking  a  better  interest  in  their  work. 
The  fact  that  they  no  longer  have  fear  of  Effects  of 
getting  hurt  and  getting  no  compensation  is  a  safety  de- 
factor    working    towards    greater    efficiency,  vices  on 
Actual  tests  have  shown  a  marked  increase  in  ^°^  ^'^* 
output  on  safeguarded  machines  due  to  natural  speeding 
of  workers  who  are  relieved  of  the  fear  of  accident.     It 
stands  to  reason  that  if  a  worker  is  compelled  to  divide 


28o  ECONOMICS  OF  EFFICIENCY 

his  attention  between  the  fear  of  coming  in  contact  with 
dangerous  moving  machinery  and  his  work,  that  if  he  is 
reheved  of  the  first,  he  will  prove  more  efficient  by  giving 
his  entire  attention  to  the  latter.  Accidents  are  costly 
to  the  employer  in  the  amount  of  money  paid  to  the 
injured  employee,  and  in  loss  of  time  and  output.  Em- 
ployers should  be  made  to  reahze  the  importance  of  acci- 
dent prevention  from  the  side  of  waste  and  increased  cost 
and  as  soon  as  this  is  made  clear  to  them,  the  great 
battle  for  accident  prevention  will  be  won. 

The  important  measures  necessary  to  minimize  acci- 
dent risks  may  be  summarized  as  follows  :  First,  the  pro- 
Ne  essar  viding  of  machinery  and  equipment  with  safe- 
measures  guards,  and  the  making  it  almost  impossible 
for  accident  for  a  worker  to  be  caught  or  injured  by  a  piece 
prevention.  ^£  machinery  or  apparatus.  Secondly,  the 
careful  instruction  of  workers  to  inculcate  habits  of 
caution  and  to  know  how  to  avoid  dangerous  places  about 
a  plant.  Thirdly,  the  providing  of  effective  rules,  signs, 
bulletins,  and  illustrated  lectures,  which  constantly  re- 
mind workers  of  dangerous  places,  and  the  enforcing  of 
strict  discipHne  in  carrying  out  all  rules  and  instructions. 
Fourthly,  the  provision  of  means  for  promptly  caring  for 
any  who  may  be  injured,  through  establishing  emergency 
rooms  and  first  aid  to  the  injured  service.  Fifthly,  the 
passing  of  legal  statutes  compelHng  every  employer  under 
severe  penalty  to  equip  machinery  and  working  places 
with  every  practical  safety  device  it  is  possible  to  secure. 
Sixthly,  the  provision  of  adequate  accident  compensation 
to  the  injured  in  case  of  accident.  You  cannot  find  a 
single  employer  who  has  installed  accident  prevention 
devices,  estabhshed  an  emergency  room  and  first  aid  to 
the  injured  service,  and  made  provision  for  the  careful 
instruction  of  employees,  who  will  say  that  money  so 
expended  is  not  well  expended,  and  that  it  does  not  pay. 


ACCIDENTS  281 


QUESTIONS 

1.  What  are  the  different  classes  of  accidents? 

2.  What   is   the  relation  between   accident   prevention   and 
efficiency  ? 

3.  Mention  various  causes  of  accidents. 

4.  What  remedies  would  you  suggest  to  overcome  ignorance 
and  carelessness  ? 

5.  What  precautions  should  be  taken  to  prevent  accidents  in 
case  of  fire  ? 

6.  What  is  the  relation  between  the  use  of  alcoholic  drinks  and 
accidents  ? 

7.  What  is  the  relation  between  fatigue  and  accidents  ? 

8.  What  parts  of  machinery  should  be  safeguarded?     What 
precautions  should  be  taken  to  prevent  safeguards  being  removed  ? 

9.  What  is  the  proper  time  for  providing  safeguards  ?     What 
statute  law  is  necessary  to  have  them  provided  at  that  time  ? 

10.  What  precautions  should  be  taken  in  oiling  and  cleaning 
moving  machinery  ? 

11.  What  are  the  different  methods  of  protecting  the  eyes  from 
accidents  ? 

12.  What  is  the  importance  of  an  emergency  room  and  first  aid 
to  the  injured  jars  ? 

13.  What  precautions  should  be  taken  in  the  employment  of 
children  ? 

14.  What  are  the  requirements  of  efficient  factory  inspection  ? 

15.  What  is  a  safety  museum  ?     How  should  it  be  conducted  ? 

REFERENCES 

Books 

Bureau  of  Labor  Statistics,  Washington,  D.  C,  Bulletin  No.  78, 
"Industrial  Accidents";  G.  L.  Campbell,  "Industrial  Accidents 
and  Their  Compensation"  ;  C.  W.  Dulles,  "Accidents  and  Emer- 
gencies"; C.  Eastman,  " Work- Accidents  and  the  Law";  F.  L. 
Hoffman,  "Industrial  Accidents  in  the  United  States,"  Encyclo- 
pedia of  Social  Reform ;  Independence  Inspection  Bureau,  "Acci- 
dent Prevention,"  Bulletin  No.  10;  "Industrial  Accidents  in 
Illinois,"  Bulletin  of  Illinois  Bureau  of  Labor  Statistics,  1907 ; 
"Industrial  Accidents  in  Canada,"  Report  of  Department  of  Labor, 
Canada,  1 907-1 908 ;  Law  and  Newell,  "The  Prevention  of  Indus- 


282  ECONOMICS  OF  EFFICIENCY 

trial  Accidents";  D.  D.  Lescohier,  "Industrial  Accidents  and 
Employers'  Liability  in  Minnesota,"  Chs.  I,  II;  "Live  Articles 
on  Industrial  Safeguards,"  The  Weekly  Underwriter;  M.  O. 
Lorenz,  "Industrial  Accident  and  Employers'  Liability,"  Report 
of  Wisconsin  Bureau  of  Labor,  1907;  W.  H.  Tolman,  "Social 
Engineering,"  Ch.  IV;  Tolman  and  Kendall,  "Safety,"  Part  I, 
Part  II,  Ch.  XXIV;  T.  D.  West,  "Accidents,  Their  Causes  and 
Remedies";  D.  Van  Schaak,  "Safeguards";  D.  Van  Schaak, 
"Woodworking  Safeguards." 


Articles 

"Accidents  in  the  Machine  Shop,  Suggestions  and  Rules  for 
Their  Prevention,"  Machinery,  Vol  18,  pp.  188-191 ;  M.  C. 
Albright,  "When  Accident  Prevention  Pays,"  Factory,  Vol.  12, 
pp.  28  +  ;  M.  C.  Albright,  "When  Accident  Prevention  Prevents," 
Factory,  Vol.  12,  pp.  142  + ;  M.  W.  Alexander,  "The  Economic 
Value  of  Industrial  Safety,"  Proceedings  of  the  First  Cooperative 
Safety  Congress,  pp.  204-211;  Atkins  and  Edwards,  "Work- 
Accidents  and  the  Employer,"  System,  Vol.  20,  pp.  41-45  ;  G.  L. 
Avery,  "Making  Accidents  Teach  Safety,"  Factory,  Vol.  11, 
pp.  431  +  ;  L.  D.  Burlingame,  "Factory Safeguards, "Human Engi- 
neering, Vol.  2,  pp.  56-68;  J.  Calder,  "The  Mechanical  Engineer 
and  Prevention  of  Accidents,"  Machinery,  Vol.  17,  pp.  550-552; 
J.  Calder,  "Manufacturers  and  Industrial  Safety,"  American 
Machinist,  Vol.  36,  pp.  273-275;  John  Calder,  "Scientific  Acci- 
dent Prevention,"  American  Labor  Legislation  Review,  Vol.  I, 
pp.  14-24;  W.  H.  Cameron,  "Accidents  to  the  Eye  and  How  to 
Prevent  Them,"  Proceedings  of  the  First  Cooperative  Safety  Con- 
gress, pp.  298-300 ;  R.  W.  Campbell,  "  Safety  in  the  Iron  and  Steel 
Industry,"  Proceedings  of  the  First  Cooperative  Safety  Congress, 
pp.  279-291;  R.  W.  Campbell,  "How  to  Organize  for  Safety," 
Factory,  Vol.  12,  pp.  127-128 ;  C.  L.  Chute,  "Industrial  Accidents, 
a  Problem  of  To-day,"  Review  of  Reviews,  August,  1910;  W.  I. 
Clark,  "First  Aid  in  Shop  Injuries,"  American  Machinist,  Vol.  38, 
pp.  320-322;  A.  Cotter,  "The  Conservation  of  the  Worker," 
Engineering  Magazine,  Vol.  45,  pp.  489-505 ;  J.  H.  Crabtree, 
"Reducing  Factory  Accidents  in  England,"  Factory,  Vol.  11, 
pp.  113  +  ;  E.  T.  Davis,  "Safety  Inspection  in  Illinois,"  American 
Labor  Legislation  Review,  Vol.  I,  pp.  81-101 ;  W.  M.  Doolittle, 
"Inspection  for  Safety,"  Human  Engineering,  Vol.  2,  pp.  56-68; 
J.  B.  Douglas,  "Accident  Prevention,"  Scientific  American  Sup- 


ACCIDENTS  283 

plement,  Vol.  76,  pp.  232-234;  H.  W.  Forster,  "Accident  Pre- 
vention,"  Stone  and  Webster  Public  Service  Journal,  Vol.  14, 
pp.  182-189;  G.  Gilmour,  "Safety  Engineering,"  Scientific  Amer- 
ican Supplement,  Vol.  76,  pp.  36-39;  C.  M.  Hansen,  "Industrial 
Accidents,"  Southern  Machinery,  Vol.  31,  pp.  82-84 ;  F.  R.  Hutton, 
"Prevention  of  Industrial  Accidents,"  Machinery,  Vol.  18,  pp.  600- 
603 ;  D.  D.  Lescohier,  "Accident  Records  in  Minnesota,"  Ameri- 
can Labor  Legislation  Review,  Vol.  I,  pp.  1 18-125;  M.  W.  Mix, 
"Education  in  Accident  Prevention,"  Proceedings  of  the  First 
Cooperative  Safety  Congress,  pp.  219-223  ;  C.  Sandburg,  "Train- 
ing Workers  to  be  Careful,"  System,  Vol.  24,  pp.  124-132 ;  R.  J. 
Young,  "Practicable  Safeguards,"  American  Labor  Legislation 
Review,  Vol.  I,  pp.  25-44. 


CHAPTER  XIII 

Fire  Prevention 

The  elimination  of  wastes  of  energy,  time,  and  ma- 
terials has  attracted  considerable  attention,  and  some 
Preventing  progress  has  been  made  in  its  accomplishment, 
waste  but  the  question  of  preventing  waste  through 

through  fire  ^j-g  prevention  has  received  little  attention, 
preven  ion.  p.^^  prevention  should  be  an  important  factor 
in  every  business,  and  it  often  has  an  important  bearing 
upon  costs  and  efficiency. 

During  the  years  between  1881  and  191 2,  the  total 
value  of  property  destroyed  in  the  United  States  by 
fire  amounted  to  $5,364,578,199.  The  fire 
from^fire  losses  have  increased  steadily  year  after  year 
in  greater  proportion  than  the  growth  of  the 
population.  The  property  loss  from  fire  in  1875  was  ap- 
proximately $78,000,000;  in  1885,  $102,000,000;  in 
1895,  $142,000,000;  in  1905,  $165,000,000;  in  1911, 
$217,000,000;  in  1912,  $225,000,000;  and  for  the  first 
nine  months  of  1913,  $1,026,900  greater  than  for 
the  first  nine  months  in  191 2.  Between  1900  and 
1 910,  the  population  of  this  country  increased  by  73 
per  cent,  while  the  fire  loss  increased  by  134  per  cent. 
Eurooe  and  '^^^  P^^  capita  loss  from  fire  in  the  United 
United  States  greatly  exceeds  that  of  any  foreign  coun- 

states  com-  try.  During  the  year  191 1,  the  per  capita  loss 
^^^^  ■  in  this  country  was  $2.62  ;   in  Italy,  $.31 ;  in 

Germany,  $.21 ;  in  France,  $.81 ;  and  in  England,  $.53. 
During  the  same  year  New  York  City  had  324  fires  for 

284 


FIRE  PREVENTION  285 

every  hundred  thousand  people ;  London,  67 ;  and  Paris, 
152.  London  in  191 1  had  4455  fires,  but  its  losses  were 
only  one  fifth  of  those  in  New  York,  while  those  of 
Paris  were  one  ninth.  According  to  ex-Chief  Croker  of 
the  New  York  Fire  Department,  Cincinnati,  Ohio,  has 
lost  from  fire  $2092  worth  of  property  every  day  for 
fifty-eight  years,  or  a  total  loss  of  $44,685,977.  During 
191 1,  five  cities  in  this  country  had  fire  losses  greater  than 
$15  per  capita,  and  nine  greater  than  $10.  In  addition 
to  this  great  loss  of  property,  1500  persons  on  the  aver- 
age lose  their  lives  annually  in  fires,  and  nearly  6000 
more  are  injured  more  or  less  seriously. 

The  great  difference  between  the  fire  loss  in  Europe 
and  in  this  country  is  the  more  striking  in  that  their 
fire-fighting  equipment  is  inferior  to  ours.  Reasons  for 
Chicago  has  a  far  more  efficient  fire-fighting  excessive 
equipment  and  force  than  Paris,  France,  yet  ^^^  losses, 
the  fire  loss  in  Chicago  in  1907  was  $1.34  per  capita,  and 
in  Paris  it  was  only  $.47.  We  excel  the  world  in  fire 
fighting,  yet  our  losses  per  capita  are  several  times 
greater  than  any  country  in  Europe.  The  only  reason 
for  this  is  that  we  are  backward  and  lax  in  our  methods 
of  fire  prevention.  Fire  prevention  is  simply  making  Hfe 
and  property  safe  against  destruction  by  fire.  Ex- 
Chief  Croker  declares  that  at  least  50  per  cent  of  our 
great  loss  in  property  and  human  life  is  preventable  and 
is  directly  due  to  inexcusable  carelessness.  Much  has 
been  learned  about  fire  prevention,  but  the  knowledge 
is  not  used  by  the  average  person.  Little  is  done  in  the 
case  of  fires  to  ascertain  the  cause,  so  that  the  knowledge 
obtained  may  be  of  use  in  preventing  future  fires. 
Prevention  is  better  than  cure  in  fire  fighting.  Em- 
ployers should  be  made  to  reahze  that  it  pays  to  take 
fire  hazard  into  consideration,  and  to  adopt  every  means 
known  to  modern  science  to  guard  against  fires. 


286  ECONOMICS  OF  EFFICIENCY 

The  losses  due  to  destruction  of  property  do  not  in- 
clude those  to  employees  from  being  thrown  out  of  em- 
insurance  ployment,  nor  those  arising  from  stoppage  of 
does  not  business  activities.  Many  employers  seem  to 
cover  total  think  that  the  only  thing  to  do  to  protect 
°^^*  themselves  against  loss  from  fire,  is  to  keep 

insured.  Insurance  may  cover  material  loss  in  buildings, 
machinery,  and  stock,  but  there  is  in  the  case  of  fire  a 
loss  to  a  going  concern  more  or  less  serious  which  insur- 
ance does  not  cover.  The  most  disastrous  losses  from 
fire  are  frequently  those  coming  from  stoppage  of  pro- 
duction, disorganization  of  business,  and  delay  in  filHng 
orders.  Insurance  can  never  cover  a  loss  of  business. 
Fire  loses  the  trade  of  customers,  who  must  be  steadily 
suppHed  with  goods  or  they  will  go  elsewhere,  and  fre- 
quently do  not  come  back  when  the  business  has  re- 
covered from  a  temporary  cessation  as  a  result  of  fire. 
It  is  good  business  to  pay  particular  attention  to  provide 
in  every  way  for  fire  prevention  rather  than  depend  upon 
remuneration  by  insurance  for  loss. 

People  proclaim  this  an  age  of  conservation.  Much 
has  been  said  and  written  about  the  great  wastes  of 
Many  fires  material  resources,  and  what  should  be  done 
are  pre-  to  protect  and  conserve  the  gifts  of  nature, 
ventabie.  j^  ^g  surprising  that  so  Kttle  has  been  done  to 
prevent  destruction  and  waste  of  material  wealth  by  fire. 
The  waste  is  enormous,  and  when  we  realize  that  a  large 
part  is  preventable  and  due  to  carelessness,  our  negligence 
appears  to  be  almost  criminal.  This  fact  alone  would 
make  fire  prevention  an  important  factor  in  efficiency. 

Losses  frequently  go  beyond  the  individual  plant 
Losses  be-  Suffering  from  fire  loss,  because  often  one  or 
yond  plant  more  plants  depend  upon  goods  produced  by 
of  fire.  ^Yie  plant  to  maintain  production,  or,  on  the 

other  hand,  one  or  more  may  largely  depend  upon  goods 


FIRE  PREVENTION  287 

consumed  by  the  plant  to  keep  them  running  at  full 
capacity.  Whatever  prevents  plants  running  to  full 
capacity  affects  efficiency,  and,  at  the  same  time,  costs 
of  production.  Any  fire  of  any  consequence  in  a  pro- 
ducing enterprise  has  a  direct  bearing  upon  production, 
and  productive  activities  are  always  to  a  greater  or  lesser 
degree  impeded.  Fire  prevention  is  therefore  an  im- 
portant factor  working  towards  efficiency,  and  has  an 
important  bearing  upon  maintaining  a  high  efficiency. 
No  treatise  upon  efficiency  is  complete  without  a  more  or 
less  careful  study  of  fire  prevention. 

The  problem  of  fire  prevention  may  be  divided  into 
three  parts,  —  preventing  the  origin  of  fires,  putting  out 
fires   after   they   occur,   and  preventing   the  Divisions 
spread  of  fires.     The  first  is  the  most  im-  offirepre- 
portant  to  the  American  people.     The  subject  mention, 
of  fire  protection  and  prevention  does  not  alone  concern 
the  producer,  but  it  is  of  the  greatest  concern  to  every 
man,  woman,  and  child,  because  fire  makes  no  discrimi- 
nation, and  its  devastations  are  felt  by  every  one  whose 
interests  in  one  form  or  another  come  within  its  destruc- 
tive path.     The  second  and  third,  although  important 
and  essential,  are  vastly  less  so  than  the  first.     Preven- 
tion is  better  than  cure  in  fire  fighting,  but  very  few 
men  act  on  this  principle. 

To  understand  the  precautions  for  fire  prevention,  it 
is  necessary  to  know  something  about  the  phenomenon, 
fire.     Fire  results  from  the  mixing  of  a  gas 
called  oxygen  with  things.     Oxygen  is  color-  ^f^l^^*^^ 
less  and  odorless,  and  with  another  gas  called 
nitrogen  forms  air,  which  is  composed  of  one  fifth  of  the 
former  and  four  fifths  of  the  latter.     Scientists  tell  us 
that  oxygen  makes  up  more  than  one  half  of  the  earth, 
and  that  every  living  creature  must  have  oxygen  to  live. 
Combustion  is  the  process  whereby  substances  or  individ- 


288  ECONOMICS  OF  EFFICIENCY 

ual  constituents  combine  with  oxygen  and  become  oxi- 
^     ^    ^.       dized  with  the  Kberation  of  heat.     Decompo- 

Combustion.      •^-  •        i  i,      ^'  r^  •.• 

sition  IS  slow  combustion.  Oxygen  umtmg 
with  carbon  produces  heat,  and  if  the  union  is  rapid  and  in 
large  enough  quantities,  the  combustion  becomes  visible 
in  flame  and  is  called  fire.  If  the  union  is  slow  as  in  the 
decay  of  organic  bodies,  the  heat  escapes  unnoticed. 
An  article  must  be  raised  to  a  certain  temperature  before 
it  can  burn.  The  presence  of  certain  substances  increases 
the  rapidity  of  oxidation  and  the  amount  of  heat  given 
off,  and  as  soon  as  the  degree  of  heat  needed  for  flame  is 
reached,  fire  results. 

Spontaneous  combustion,  or  a  substance  taking  fire  of 
its  own  accord,  is  very  mysterious  to  the  average  man. 

During  every  year,  this  is  the  cause  of  many 
comb*ustion^  fires.     The  phenomenon  is  possible  without 

the  assistance  of  any  external  heat,  and  this 
is  the  mystifying  part  of  its  occurrence.  Spontaneous 
combustion,  chemists  claim,  is  the  result  of  various 
processes,  but  the  most  frequent  one  is  the  chemical 
process  whereby  substances  combine  with  the  oxygen  of 
the  air.  Take  for  example  a  piece  of  cotton.  It  is 
porous  and  is  filled  with  a  great  quantity  of  oxygen.  A 
slight  spark  will  cause  instant  bursting  into  flame.  Add 
to  the  cotton  saturated  with  oxygen,  animal  oils  also 
loaded  with  oxygen,  oxidation  takes  place  at  a  more  rapid 
rate,  and  as  a  result  more  heat  is  produced.  The  heat 
becomes  more  and  more  intense  until  the  point  of  igni- 
tion is  reached  and  flame  bursts  forth.  Saturate  a  piece 
of  cotton  with  animal  oils,  and  if  conditions  are  favor- 
able, it  will  burst  forth  into  flame  in  a  comparatively 
short  time. 

Fibrous,  porous,  and  finely  divided  materials  favor 
spontaneous  ignition  because  they  are  always  saturated 
with  oxygen.     When  these  are  brought  in  contact  with 


FIRE  PREVENTION  289 

oils  or  fats  saturated  with  carbons  and  oxygen,  the  tend- 
ency to  spontaneous  combustion  is  greatly 
increased.      The   oxygen-saturated   oils    and  condSons. 
fats  scattered  over  a  large  surface  increase  the 
rapidity  of  oxidation  and  the  production  of  heat.     The 
heat  becomes  more  and  more  intense  until  the  point  of 
ignition  is  reached,  and  then  flame  bursts  forth.     This  is 
a  most  favorable  condition  for  spontaneous  combustion, 
and  explains  many  mysterious  fires  in  the  cotton  mills  of 
New  England.     Thus  is  seen  the  danger  in  allowing  oil- 
soaked  materials  to  collect  in  out-of-the-way  places,  or 
in  any  place  in  a  building. 

Although  water  is  a  fire  destroyer,  yet  under  certain 
conditions  a  small  amount  of  it  may  assist  in  producing 
spontaneous  ignition.  Dampness  in  many  Danger  of 
substances  increases  the  rapidity  of  oxidation  dampness  in 
and  heat  production.  Damp  hay  or  grain  "^^tenais. 
stored  in  a  barn  favors  oxidation,  and  frequently  the  heat 
produced  is  sufficient  to  raise  the  temperature  to  the 
point  of  ignition.  Piles  of  wet  excelsior,  rags,  straw,  etc., 
produce  favorable  conditions  for  spontaneous  combus- 
tion. Many  a  fire  in  home  and  in  plant  is  caused  in  this 
way,  and  is  due  to  carelessness  in  allowing  wet  rags  to 
collect  in  closets,  cupboards,  cellars,  etc.  Spontaneous 
combustion  may  occur  in  any  inflammable  material 
which  is  subject  to  oxidation,  and  moderate  moisture  and 
warmth  encourage  it. 

The  principal  causes  of  fire  are,  according  to  experts, 
rubbish  heaps,  lighted  matches,  cigars,  cigarettes,  and 
exposed  gas  jets.     Rubbish  and  wastes  of  all 
kinds  are  great  fire  hazards  in  every  factory,  q^^^^^ ° 
store,  or  home.     Cleanliness  is  therefore  a  first 
requisite  in  fire  prevention,  and  there  is  nothing  that  is 
so  dangerous  as  an  accumulation  of  rubbish  of  any  sort. 
Many  are  the  places  about  a  store,  factory,  or  house  that 


290  ECONOMICS  OF  EFFICIENCY 

collect  rubbish.     The  best  way  to  keep  rubbish  from  be- 
coming a  fire  danger  is  to  have  no  rubbish,  and 
to   keep   places  where   rubbish  accumulates 
entirely  clean.     Cuttings,  wastes,  and  rubbish  should  be 
deposited  in  fireproof  cans,  and  removed  at 
rubbish         ^^^  ^^^  ^^  ^^^^  working  day.     The  disastrous 
Triangle  Waist  Company  fire,  causing  many 
deaths,  was  caused  by  a  lighted  cigarette  being  thrown 
into  a  pile  of  cuttings.     A  few  dollars  provide  fireproof 
cans  for  all  kinds  of  rubbish.     The  compulsory  placing 
of  all  rubbish  in  such  cans  and  their  emptying  at  the  end 
of  each  working  day  greatly  decreases  fire  hazard.     In  a 
factory  or  store  where  more  or  less  cuttings  and  rubbish 
find  their  way  to  the  floor,  and  are  likely  to  be  cast  into 
out-of-the-way  places,  the  em_ployment  of  a  boy  to  keep 
the  floors  clean  decreases  the  fire  hazard. 

Extreme  care  should  be  taken  in  looking  after  discarded 
oily  wastes  of  all  kinds.     Employees  should  be  carefully 
instructed  in  the  great  hazards  of  their  presence 
^u  ^wastes     ^^  ^  factory  or  store.     Oily  wastes,  greasy  rags, 
wiping  rags   left  by  painters,   greasy  lunch 
papers,  should  never  be  thrown  aside,  but  extreme  care 
should  be  taken  to  see  that  all  are  placed  in  fireproof 
cans  with  self-closing  covers.     All  oxidize  very  rapidly, 
and  spontaneous  combustion  is  likely  to  follow.     Many 
fires  start  from  throwing  greasy  wastes  or  rags  into  cut- 
tings  or   shavings.     Frequently   oily   or   grease-soaked 
clothes  are  allowed  to  hang  on  wooden  partitions  instead 
of  in  fireproof,   well-ventilated  lockers.     All 
^Mhin^         lockers,  and  especially  where  they  are  to  con- 
tain oil-soaked,  greasy  clothing,  should  be  fire- 
proof, and  such  clothing  should  never  be  allowed  to  be 
left  except  in  the  proper  places.     Such  clothing  is  favor- 
able to  spontaneous  combustion,  and  the  condition  be- 
comes more  favorable  if  the  room  were  to  become  very 


FIRE  PREVENTION  291 

humid.  Many  an  unknown  fire,  if  the  real  cause  could 
be  known,  could  be  traced  to  the  presence  of  oily  or 
greasy  wastes,  rags,  or  clothing  being  carelessly  cast 
aside  about  factory  or  store,  and  spontaneous  combustion 
following. 

Extreme  care  should  be  exercised  in  the  handling  and 
the  using  of  all  liquids  or  materials  which  are  highly 
inflammable.  If  it  is  necessary  to  keep  any  inflammable 
quantity  on  hand,  it  should  be  allowed  only  liquids  and 
in  fireproof  supply  rooms,  and  only  enough  ^^atenais. 
should  be  taken  out  to  last  for  safe  periods  of  time. 
If  artificial  light  is  necessary,  electricity  should  be 
used,  and  under  no  condition  should  exposed  flame  be 
allowed.  If  the  workers  handle  quantities  of  inflam- 
mable materials,  fireproof  tables  should  be  used  and  no 
cuttings  or  rubbish  of  any  kind  should  be  allowed  to 
collect. 

Many  people  make  a  mistake  in  using  sawdust  in 
pans  to  catch  oil  drippings,  or  in  spittoons.  Either  prac- 
tice is  very  dangerous  in  any  place.  Sawdust  Filling  for 
soaked  with  oil  may  at  any  moment  spring  spittoons 
into  flame,  and  sawdust  dampened  with  water  ^^^  °^  p^^^- 
is  also  very  favorable  to  spontaneous  combustion.  Sand 
should  be  used  instead  of  sawdust,  and  then  no  danger 
lurks  in  pan  or  spittoon.  GasoKne,  naphtha,  or  other 
volatile  oils  should  never  be  stored  in  buildings.  They 
give  off  highly  inflammable  vapors,  which,  if  mixed  with 
air  in  the  right  proportion,  form  explosive  gases  that 
very  readily  ignite.  A  person  cannot  be  too  cautious  in 
the  using,  handhng,  or  storing  of  any  highly  inflammable 
substance.  There  is  a  twofold  danger.  One  is  the  dan- 
ger of  fire,  and  the  other,  the  sudden  bursting  into  flame 
under  favorable  conditions,  frequently  causing  explosions, 
accidents,  and  sometimes  the  deatl?  of  people  in  the  near 
vicinity. 


292  ECONOMICS  OF  EFFICIENCY 

Matches  carelessly  thrown  about  are  the  cause  of  a 
great  many  fires.  No  match  should  be  manufactured 
that  will  strike  upon  any  place  except  the 
box.  Matches  thrown  carelessly  about  are 
often  carried  by  rats  or  mice  to  their  nests.  These 
rodents  like  to  nibble  at  the  tips,  and  this  nibbling  fre- 
quently causes  ignition  and  fire.  Ex-Chief  Croker  de- 
clares that  more  destructive  fires  are  chargeable  to  the 
parlor  match  than  to  any  other  cause.  Mr.  McKeon,  the 
well-known  fire  expert,  states  that  there  is  only  one  safe 
rule  for  matches,  and  that  is,  use  only  safety  matches, 
the  kind  that  have  to  be  struck  on  the  box  to  be  lighted. 
A  match  falls  from  the  clothes  of  a  worker  to  the  floor, 
and  is  lost  amidst  cuttings  and  wastes.  A  person  by 
chance  steps  upon  the  tip,  and  if  it  is  not  a  safety  match, 
it  ignites  and  a  disastrous  fire  may  result.  Many  a 
serious  fire  has  its  beginning  under  similar 
S^handSig  circumstances.  In  the  modern  business  house 
or  factory,  it  should  not  be  necessary  to  use 
matches,  but  if  matches  are  needed  to  light  the  gas,  they 
should  be  placed  in  a  fireproof  box  near  where  needed, 
and  not  be  carried  by  workers.  Pipes  or  matches  should 
not  be  carried  by  workers  while  in  a  factory  or  store. 
Workers  should  have  a  place  at  the  entrance  of  place 
of  work  to  leave  their  pipes  and  matches.  This  should 
be  enforced  by  rigid  discipKne,  and  if  matches  are  found 
on  a  worker  in  the  place  of  work,  severe  punishment 
should  follow. 

One  of  the  most  frequent  causes  of  fire  is  smoking. 
Smoking  should  be  prohibited  in  every  factory  or  store. 
In  the  majority  of  factories  and  stores,  in  spite 
of  posted  prohibitions  and  verbal  instructions 
not  to  smoke,  smoking  goes  on  all  the  time  by  superin- 
tendents and  employees.  The  members  of  the  Factory 
Investigating  Commission  of  the  State  of  New  York  in 


FIRE  PREVENTION  293 

their  report  state  that  considerable  smoking  was  found  in 
nearly  all  of  the  buildings  visited,  and  frequently  the 
proprietor  or  superintendent  would  be  smoking  while 
showing  the  estabHshment  to  the  inspectors  of  the  Com- 
mission, and  that  smoking  employees,  seeing  their  ap- 
proach, would  sometimes  throw  a  lighted  cigarette 
underneath  tables  and  in  corners  where  rubbish  and 
scraps  might  easily  have  started  a  blaze.  Some  even  go 
so  far  as  to  claim  that  it  is  impossible  to  pro- 
hibit smoking.     The  working  force  should  be     °y  **J 

•  ,-  •I'll  prevent. 

mstructed   m   the  great   risks  mvolved,  not 
only  to  property  but  to  Hves,  in  allowing  smoking  in  a 
place  of  work.     Strict  rules  should  be  made,  and  penalties 
should  be  so  drastic  to  the  one  who  dared  to  break  the 
rules,  that  smoking  would  soon  be  impossible. 

Hot  ashes  are  responsible  for  many  fires.     Many  have 
the  bad  habit  of  dumping  ashes  on  the  floor  and  allow- 
ing them  to  accumulate  for  several  days  before 
removing.     The  ash  pile  in  the  meantime  be- 
comes the  common  dumping  ground  for  wastes  of  dif- 
ferent kinds.     Ashes  should  not  be  allowed  to  be  piled 
on  the  floor,  or  kept  in  barrels  or  wooden 
boxes,  but  should  always  be  kept  in  closed  carrfor 
metal  cans.     They  should  not  be  allowed  to 
be  kept  in  buildings  even  over  night,  but   should  be 
removed  from  the  premises  as  soon  as  collected. 

Many  fires  occur  annually  from   not   properly  pro- 
tected gas  jets.     All  jets  in  factories  and  stores  should  be 
inclosed  by  globes,  wire  cages,  or  otherwise   _     . 
properly  protected.     Gas  jets  should  be  rigid, 
or  so  arranged  that  they  cannot  swing  against  woodwork 
or  other    combustible    material.     If   the    distance   be- 
tween gas  jets  and  a  combustible  ceiling  or 
combustible  material  is  less  than  three  feet, 
there  should  be  provided  a  heat  deflector,  preferably  in 


294  ECONOMICS  OF  EFFICIENCY 

the  form  of  a  metal  bell,  which  should  be  suspended  over 
the  jet  at  least  four  inches  from  the  ceihng  or  material 
exposed.  Even  with  a  heat  deflector,  the  gas  jet  should 
not  be  less  than  eighteen  inches  from  inflammable  ma- 
terial. All  combustible  materials  on  walls  behind  gas 
jets,  and  within  one  foot,  should  be  protected  preferably 
by  a  sheet  of  asbestos-board  and  tin  with  an  air  space. 
In  no  case,  even  where  a  shield  is  provided,  should  a  gas 
jet  be  less  than  eight  inches  from  combustible  material 
on  walls.  Rubber  tube  connections  should  be  avoided 
wherever  possible,  and  if  it  must  be  used,  the  gas  should 
be  turned  on  and  off  where  the  tube  joins  the  gas  pipe, 
and  not  at  the  burner.  The  use  of  mantles  and  in- 
closed burners  is  safer  and  preferable  to  ordinary  tips. 
If  the  smell  of  gas  is  detected,  open  doors  and  windows, 
and  do  not  look  for  a  gas  leak  with  matches  or  exposed 
lights. 

If  the  oil  lamp  is  used,  many  precautions  should  be 
taken.     Care  should  be  taken  that  the  lamp  is  always 

safe  from  being  knocked  over.  Lamps  should 
ouiamp.  always  be  filled  during  dayhght,  and  never 
while  burning,  and  those  burning  gasoHne  or  naphtha 
should  not  be  allowed  in  factory,  store,  or  home.  The 
best  grade  of  kerosene  should  be  used,  and  it  never 
should  be  used  to  start  fires. 

Faulty  insulation  and  imperfect  wiring  cause  many 
fires.     When  electric  Hghting  is  installed  in  factory,  store, 

or  house,  the  wiring  should  be  such  as  com- 
i^'wki'ng°'''    P^i^^  wi^^   ^^^   regulations   of   the   National 

Board  of  Fire  Underwriters.  Wiring  is  a  true 
source  of  danger  if  not  properly  installed,  but  it  is  per- 
fectly safe  if  properly  done.  Careful  inspection  should 
regularly  be  made,  and  deterioration  should  not  be 
allowed  to  go  too  far  before  renewing.  Incandescent 
electric  light  bulbs  should  not  rest  on  combustible  ma- 


FIRE  PREVENTION  295 

terials,  and  the  latter  should  not  hang  or  be  draped  over 
the  former. 

The  heating  of  factory,  store,  or  home  is  either  by  gas, 
electricity,  hot  water,  steam,  hot  air,  or  stove.     In  each 
case,   precautions   should   be   taken,    or   fire 
hazards  will   exist.     The  gas  stove  is   used  ^aSi°g^,^°^ 
more  extensively  for  heating  purposes  in  the 
house  than  in  factory  or  store.     Gas  stoves,  if  used,  should 
have  legs  or  stands  to  keep  the  burners  above  the  base 
of  the  stove,  but  if  less  than  a  foot  from  combustible 
material,   a  heat  shield  should  be  used.     Iron  piping 
should  be  used  for  all  connections,  as  rubber 
tubing  wastes  gas,  catches  fire  easily,  and,  by 
leaking,  causes  explosions.     The  same  precautions  should 
be  taken  when  wiring  for  electric  heating  as  for  fighting. 
The  electric  heater  should  not  be  nearer  than 
a  foot  to  woodwork  or  combustible  material,  heater ^ 
If  nearer,  a  heat  shield  should  be  used,  and  in 
no  case  should  a  space  of  less  than  eight  inches  exist. 

Pipes  for  carrying  hot  water,  steam,  or  hot  air  should 
be  properly  protected  when  installed.     Those  running 
underneath  floors  should  be  properly  covered  gteam  hot 
with  non-conducting  materials.     Many  fires  water,  and 
are  traceable  to  contact  of  steam  pipes  with  ^°*  ^ 
floors,  ceifings,  and  partitions.     If  pipes  run     ^^  ^^' 
in  concealed  parts,  there  should  be  proper  ventilation, 
and  in  every  case  it  should  be  possible  to  inspect,  and 
inspection  should  be  careful  and  frequent.     SmaU  pipes 
for  feeding  radiators  should  have  a  clear  space  of  two 
inches  from  wood  or  combustible  materials,  and  one  inch 
if  a  shield  is  used.     When  pipes  pass  through  ceifings,  or 
floors,  there  should  be  metal  sleeves  or  tubes  at  least  an 
inch  larger  than  the  pipe.     A  tight  collar  should  be  next 
the  floor  or  ceifing  to  prevent  dust  or  rubbish  from  get- 
ting into  the  opening. 


296  ECONOMICS  OF  EFFICIENCY 

Many  owners  of  small  factories  and  stores  still  use  the 

wood  or  the  coal  stove  for  heating  purposes.     All  stoves 

should  be  placed  on  legs  or  stands  to  keep 

Wood  and      them  from  the  floor.     Underneath  every  stove, 

coal  stoves.  ,        i  1    i  i         •       i    •  • 

there  should  be  a  galvamzed  iron,  zmc,  or 
sheet  iron  covering,  and  this  should  extend  beyond  the 
front  to  catch  any  coals  that  might  by  accident  drop. 
At  least  three  feet  of  clear  space  should  exist  around 
stoves,  but  if  not  this  distance,  metal  shields  should  be 
used.  These  shields  should  be  at  least  one  inch  from 
combustible  material,  so  as  to  allow  an  air  space  for 
heat  to  circulate.  Wood  in  contact  with  hot-air  or  steam 
pipes  will  char,  and  then  take  fire  rapidly,  and  if  condi- 
tions are  favorable,  may  ignite  spontaneously.  Wood 
within  two  feet  of  such  pipes  should  be  protected,  if  pos- 
sible, by  heat  shields  with  air  space.  A  few  inexpensive 
precautions  remove  many  fire  hazards,  and  if  all  would 
see  that  such  were  used,  there  would  be  several  thou- 
sand less  fires  every  year. 

Stovepipes  should  run  directly  from  the  stove  to  the 
chimney,  and  should  not  go  through  floors  or  partitions. 

In  case  they  do,  extreme  precaution  should  be 
stovepipes.  ^^-^^^  ^^  protect  by  heat  shield  and  air  space. 
All  chimneys  should  be  inspected  regularly  and  kept 
clean.  Stovepipes  should  be  spark-tight,  and  sections 
should  fit  tightly  into  each  other  by  at  least  three  inches. 
Every  pipe  should  enter  the  chimney  horizontally,  but 
should  not  enter  so  far  as  to  choke  the  flue.  It  is  advis- 
able to  have  one  or  more  turns  in  a  pipe  before  entering  a 
chimney,  because  bends  and  turns  are  needed  to  kill  sparks. 
Many  of  our  factory  and  store  buildings  have  open 

spaces  under  floors,  behind  walls,  and  over  the 
Dangers  in     (.gjij^sfs.     These  concealed  spaces  form  excel- 

open  spaces.  f>  ^  1       •        . 

lent  hiding  places  for  rats  and  mice  to  roam, 
and  build  their  nests.     Holes  in  floors  allow  cuttings 


FIRE  PREVENTION  297 

and  wastes  to  collect,  and  holes  in  ceilings  and  walls  per- 
mit the  collecting  of  dust.  All  assist  in  making  condi- 
tions most  favorable  for  starting  fires  by  spontaneous 
combustion.  Special  care  should  be  taken  that  no  hollow 
construction  exists,  and  every  precaution  should  be  taken 
to  keep  floors,  walls,  and  ceilings  absolutely  tight.  Regu- 
lar inspection  should  be  made  for  nests  of  rats  and  mice, 
and  special  care  should  be  taken  to  prevent  the  collecting 
of  dust,  cuttings,  and  wastes  in  concealed  places. 

In  many  factory  and  store  buildings^  a  serious  fire 
hazard  exists  in  shafts  and  openings  through  floors  and 
ceilings,  as  stairways,  elevators,  belt  holes,  pipe 
ducts,  ventilating  shafts,  etc.     These  openings  openings^ 
make  it  easy  for  the  rapid  spreading  of  fire 
through  a  building,  and  soon  getting  beyond  the  control 
of  firemen.     Openings  should  all  be  closed  so  as  to  pre- 
vent their  acting  as  fire  carriers.     A  sheathed  wall  is 
dangerous,  as  it  allows  fire  to  spread  rapidly  from  cellar 
to  roof.     Special  attention  should  be  paid  to  floors,  walls, 
and  ceilings  to  keep  them  absolutely  tight,  and  if  such 
precautions  are  taken,  fire  hazard  will  be  greatly  reduced. 

Means    should    be   taken    to    keep    a    factory    as 
free   from  dust  as   possible.     This  is  imperative,    not 
only  as  a  protective  measure  to  the  health 
of  employees,  but  is  in  many  cases  necessary  ^^^^^^  ^ 
as  a  prevention  of  fire.     Frequently  in  many 
factories,    the    dust    is    of    such    a  character    that   a 
quantity  of  it  suspended  in  the  air  in  the  right  proportion 
forms  an  explosive  mixture.     This  is  true  of  the  dust 
found  in  grain  elevators,  flour  mills,  planing  mills,  etc. 
A  slight  spark  caused  by  a  nail  or  stone  getting  into  the 
grinder  will  ignite  flour  dust,  and  cause  a  disastrous  ex- 
plosion.    Frequently  small  sparks  of  electricity  will  be 
given  off  of  belts,  and  just  sufficient  to  cause  if  conditions 
are  favorable  the  ignition  and  explosion  of  dust-laden 


298  ECONOMICS  OF  EFFICIENCY 

air.  Moisture  in  the  air  lays  dust  and  materially 
lessens  static  discharges  from  belts,  and  may  be  admitted 
by  allowing  jets  of  steam  to  escape  where  most  of  the 
dust  is  found.  Just  sufficient  steam  should  be  allowed 
to  moisten  the  atmosphere,  and  not  enough  to  cause 
damage  to  whatever  stock  may  be  in  the  room.  As  re- 
gards belts,  Professor  M.  M.  Richter  states  that  coating 
them  once  a  week  with  acid-free  glycerin  attracts  mois- 
ture, and  not  only  gives  security  against  static  discharges, 
but  increases  the  life  of  the  leather. 

The  second  part  of  the  problem  of  fire  prevention  is 
controlling  and  putting  out  a  fire  after  it  starts.     Effi- 
cient control  of  fire  requires  prompt  discovery, 
&^^^  °^     prompt  application  of  extinguishing  measures, 
and   the  provision  of  retarding  or  confining 
measures.     For  detecting  fires,  various  automatic  devices 
are  in  use,  as  well  as  the  old  method  of  employing  watch- 
men or  fire  patrols.     Automatic  fire  alarms  or  detectors 
are  operated  by  the  heat  of  the  fire,  and  ring  alarms  or 
give  signals  to  the  fire  department,  or  to  per- 
fire^Sarms.    ^^^^  ^  charge  of  a  building.     The  automatic 
fire  alarms,  or  thermostats  as  they  are  called, 
are  of  various  types,  and  if  well  made  and  properly  in- 
stalled, are  of  great  value  in  fire  detection.     The  ma- 
jority are  alike,  in  that  they  send  in  an  alarm  when  the 
temperature  in  the  place  which  they  protect  rises  sud- 
denly beyond  a  certain  degree  of  heat,  usually  a  hundred 
and  fifty  to  a  hundred  and  fifty-five  degrees  Fahrenheit. 
Thermostats  are  either  electrical  or  pneumatic 

Electrical         •  ,•  rr^-i  .  •      •>  i 

thermostats.  ^^  operation.  The  great  majority  are  elec- 
trical, and  depend  for  their  operation  on  the 
melting  or  expansion  of  parts  of  the  mechanism  as  a  result 
of  a  rapid  rise  in  temperature  to  the  point  of  safety. 
The  melting  or  expansion  causes  the  completion  of  an 
electrical   circuit,   and   the  electrical  current  starts  in 


FIRE  PREVENTION  299 

operation  the  transmitting  mechanism  which  sends  in 
the  alarm.     The  pneumatic  thermostat  de- 
pends upon  the  melting  of  a  fusible  strip  of 
metal  used  as  a  connection  by  which  a  piston  is  moved 
and  air  compressed,  and  the  resulting  pressure  starts 
in  operation  the  transmitting  apparatus  which  sends  in 
the  alarm.     Thermostats  of  the  best  variety  give  an 
alarm  at  a  sudden  rise  of  temperature  only  and  this 
avoids  alarms  when  the  area  protected  gradu-  installation 
ally  becomes  hot  by  natural  means,  as  by  ofthermo- 
allowing  steam  heat  to  remain  on,  or  through  ^*^*^' 
defects  of  the  heating  system.     Thermostats  are  placed 
in  ceihngs  at  from  eight  to  twelve  feet  apart,  and  cover 
the  entire  floor  space.     Care  should  be  taken  in  their 
installation  in  order  to  provide  the  proper  wiring.     A 
single  circuit  should   not  carry  more  than  twenty-five 
instruments.     Circuits  should  be  provided  with  auto- 
matic means  of  giving  notice  when  they  are  out  of  order, 
but  this  precaution  should  not  prevent  careful  and  con- 
stant inspection.     The  wires  of  the  system  should  be 
under  battery  test ;  if  not,  a  testing  apparatus  should  be 
in  some  part  of  the  building  where  an  employee  is  con- 
stantly on  duty. 

A  recent  development  of  the  thermostat  idea  is  the 
use  of  heated  air  as  an  active  mechanism.     Air  when 
heated  expands  and  produces  pressure  which  Automatic 
is  the  working  principle  of  this  new  automatic  alarm 
alarm.     The  device  is  simple,  and  consists  of  operated  by 
copper  tubing  of  small  size  which  is  fastened 
upon  the  ceiling  of  the  room  to  be  protected.     At  the 
end  of  the  tube  is  a  box  containing  a  detector  and  a 
transmitter.     The  tube  is  filled  with  air  of  the  same 
temperature  as  the  room,  and  when  the  latter  becomes 
hot,  that  in  the  tube  undergoes  the  same  change.     The 
detector  is  a  device  whose  purpose  is  to  make  an  elec- 


300  ECONOMICS  OF  EFFICIENCY 

trical  contact,  and  by  this  means  operate  the  transmitter. 
It  has  a  silver-foil  diaphragm.  When  the  air  is  heated, 
the  extra  pressure  pushes  the  diaphragm  outward,  and 
makes  an  electrical  contact^  which  starts  the  transmitter, 
and  the  alarm  is  sent  in.  The  contact  is  made  only 
when  the  silver-foil  diaphragm  is  pushed  outward  by  a 
certain  pressure  which  comes  from  a  certain  amount  of 
heat  in  the  tube. 

Experts  by  experimentation  discovered  that  a  real 
fire  causes  the  air  in  the  tubing  to  increase  in  tempera- 
ture at  the  rate  of  about  four  degrees  per 
va/ve^  minute.     The  detector  is  set  to  operate  by  a 

rise  of  temperature  of  four  degrees  or  more, 
but  if  the  rise  is  less  than  four  degrees,  no  alarm  is  sent 
in,  because  a  safety  valve  or  vent  prevents  it.  The 
safety  valve  consists  of  a  closed  tube  with  a  very  small 
opening.  This  allows  the  air  to  escape  as  long  as  it  is 
heated  less  than  four  degrees  per  minute,  but  if  the  tem- 
perature increases  at  the  rate  of  four  degrees  or  more,  the 
opening  cannot  let  the  air  escape  fast  enough,  so  the 
expansion  causes  sufficient  pressure  on  the  diaphragm  to 
make  an  electrical  contact,  and  to  start  the  transmitter  in 
sending  the  alarm.  It  makes  no  difference  whether  the 
temperature  in  the  place  protected  is  high  or  low,  because 
a  rapid  rise  is  what  operates  the  device.  The  alarm  will 
work  as  well  in  a  cold-storage  vault  as  in  a  room  with  a 
mean  temperature  of  a  hundred  and  fifty  degrees. 

A  common  alarm  is  the  manual  alarm  box,  which  is  a 
simple  alarm  operated  by  hand.  A  chief  prerequisite  is 
accessibihty,  so  that  no  time  will  be  lost  in 
^a^r^  box  gi^^^S  ^^^  alarm.  The  number  of  alarm  boxes 
in  a  building  depends  upon  its  area.  They 
should  be  placed  so  that  in  any  case  no  great  distance 
should  be  traveled  to  reach  one.  Manual  alarms  re- 
quire testing,  which  should  be  thorough,  and  as  frequent 


FIRE  PREVENTION  301 

as  once  a  month.  The  boxes  should  be  painted  bright 
red,  have  directions  posted  in  one  or  more  languages,  if 
need  arises  for  it,  and  be  so  designed  that  they  cannot  be 
used  for  any  other  purpose. 

Another  protection  against  fire  is  the  employment  of 
watchmen  or  fire  patrols  who  regularly  patrol  a  building 
during  nights  and  hoHdays,  and  visit  every 
part  at  least  once  each  hour.  The  custom  is  "^  ^^ 
to  have  watchmen  in  addition  to  automatic  alarms.  For 
fire  detection  during  nights,  hoKdays,  and  Sundays, 
watchmen  are  necessary  in  any  factory  or  building  of 
value.  As  a  guarantee  that  watchmen  properly  perform 
their  duties,  a  system  of  control  has  been  estabhshed  for 
them.  The  movements  of  the  watchman  are  recorded 
by  means  of  time  detectors,  and  they  are  absolutely  neces- 
sary to  make  a  patrol  system  effective.  A  patrol  should 
be  made  every  hour  from  the  end  of  the  day's  business 
until  just  before  business  is  again  resumed.  Special  care 
should  be  taken  in  the  choice  of  watchmen.  They  should 
not  only  be  men  of  high  character  and  strictly  temperate 
in  every  way,  but  if  possible,  should  be  men  of  some 
experience  in  fire  matters.  Veteran  firemen  or  men  who 
have  served  as  volunteer  firemen  are  best  suited,  and  a 
few  dollars  a  month  should  not  be  considered  if  a  properly 
quaHfied  watchman  can  be  obtained. 

The  general  types  of  instruments  for  recording  the 
movements  of  watchmen  are  the  portable  watch  clock, 
the  stationary  watch  clock,  and  the  central 
ofiice  system.  The  portable  watch  clock  in  J^J^^  clock 
appearance  is  a  small  alarm  clock,  and  as  the 
name  signifies,  is  carried  by  the  watchman  on  his  rounds. 
The  record  is  made  on  a  paper  dial  by  inserting  a  key, 
the  turning  of  which  punctures  or  embosses  the  dial. 
The  dial  should  be  large  enough  to  make  it  possible  to 
determine  with  accuracy  the  time  at  which  the  record 


302  ECONOMICS  OF  EFFICIENCY 

is  made.  A  building  is  divided  into  a  number  of 
stations,  and  each  station  has  a  distinctive  key.  The 
paper  dial  should  show  the  exact  hour  and  minute,  and 
the  number  of  times  that  each  key  is  used. 

The  stationary  watch  clock  system  may  be  sub- 
divided into  two  general  classes.  The  first  is  one  sta- 
tionary clock  in  a  central  location,  and  the 
watch^tock  second  consists  of  many  stationary  clocks 
located  in  different  parts  of  a  building.  A 
stationary  clock  of  the  first  class  is  in  appearance  hke  an 
ordinary  office  clock.  It  resembles  the  portable  clock 
in  that  it  uses  a  paper  record,  but  it  is  different  in  that 
it  is  electrically  operated.  The  marking  mechanism  is  a 
needle  point  held  back  of  the  paper  record.  The  point 
is  mounted  on  one  end  of  a  pivoted  lever  bar  at  the 
other  end  of  which  is  an  electric  magnet.  When  elec- 
tricity flows  through  the  coil  of  wire  around  the  magnet, 
the  lever  bar  is  attracted,  and  the  movement  forces  the 
point  into  the  paper  record.  Each  station  has  a  sepa- 
rate marking  mechanism  connected  by  wires  to  a  small 
generator  at  the  station.  The  generator  is  a  device  for 
producing  a  current,  and  is  operated  by  turning  a  handle 
carried  by  the  watchman.  When  a  watchman  visits  a 
station,  he  inserts  his  handle  into  the  mechanism  and 
turns  it.  This  starts  the  electrical  current  which  marks 
the  time  on  the  dial  at  the  office.  If  there  are  several 
watchmen,  each  having  a  separate  district,  each  will  have 
a  separate  clock,  or  a  separate  dial  on  a  large  clock  face. 
The  second  form  consists  of  a  separate  clock  in  differ- 
ent stations  of  the  building.  The  records  of  rounds  are 
Separate  Ordinarily  made  by  puncturing  the  dial,  which 
clocks  in  is  usually  made  of  paper,  but  sometimes  the 
different  rccords  are  made  by  embossing.  Whatever 
method  is  used,  the  marks  should  be  clear  and 
distinct.     The  puncture  or  embossing  is  made  by  insert- 


FIRE  PREVENTION  303 

ing  and  turning  a  key.  The  opening  of  the  door  should 
make  by  some  mechanical  means  a  distinct  record  on  the 
dial.  A  precaution  should  be  taken  to  have  the  keys 
of  watch  clocks  of  rather  an  elaborate  pattern,  so  that 
dupKcates  cannot  be  easily  made,  and  that  a  key  will 
fit  only  the  clock  for  which  it  is  intended.  The  station- 
ary clock  of  the  first  type  is  more  commonly  used  than 
the  second. 

The  central  office  system  is  in  use  in  many  large  plants. 
The  territory  to  be  covered  by  watchmen  is  divided  into 
a  number  of  stations,  and  each  is  equipped  central 
with  a  special  kind  of  signal  box,  which  is  office 
usually  worked  by  inserting  a  key  and  ^y^*®^- 
winding  a  spring.  The  spring,  on  being  released, 
starts  in  motion  a  tooth  wheel  which  makes  an  elec- 
trical contact  with  a  registering  device  in  the  central 
office.  The  registering  device  prints  upon  a  paper  tape 
a  mark  for  each  tooth  of  the  wheel  in  the  station  box, 
and  the  teeth  are  spaced  to  correspond  to  a  given  number 
which  is  a  station  signal.  Each  box  has  a  separate 
signal,  and  the  operator  at  the  central  office  records  the 
time  it  is  received.  In  a  large  factory  or  store,  the  cen- 
tral ofiice  system  may  be  conducted  by  the  factory  or 
store  itself,  but  the  usual  practice  is  to  have  it  conducted 
by  a  special  company,  who  make  a  specialty  of  fire  detec- 
tion. Messengers  are  kept  in  attendance.  When  signals 
do  not  come  at  allotted  times,  they  are  dispatched  to 
ascertain  the  cause. 

The  third  problem  of  fire  prevention  is  the  applying  of 
fire  extinguishers  as  soon  as  possible  after  a  fire  starts. 
The  most  efficient  means  of  rapidly  checking 
the  spread  of  fire,  and  putting  it  out  in  its  ^^j-i^^erg. 
incipiency,  is  the  automatic  sprinkler  system. 
Chief  John  Kenlon  of  the  New  York  Fire  Department 
declares  that  the  sprinkler  is  the  best  single  means  of 


304  ECONOMICS  OF  EFFICIENCY 

preventing  fires  and  saving  life  known  to  scientific  fire 
fighters.  The  automatic  sprinkler,  when  properly  ar- 
ranged and  systematically  inspected,  has  been  described 
as  the  greatest  economic  system  of  the  age.  One  of  the 
best  known  experts  in  fire  prevention  has  declared  that 
fully  90  per  cent  of  the  fires  in  buildings  equipped  with 
automatic  sprinklers  have  been  effectively  held  in  check 
or  extinguished  in  incipiency.  To  obtain  the  greatest 
efficiency,  automatic  sprinklers  should  be  properly  in- 
stalled, carefully  inspected,  and  maintained  at  the 
highest  point  of  efficiency. 

Automatic  sprinklers  are  of  many  varieties  and  vary 
in  size,  power,  and  cost.  They  are  devices  for  shower- 
ing water  on  fires  at  their  starting  without  specific 
Mechanism  human  agency.  The  sprinkler  is  the  mecha- 
of  nism  which  discharges  water  upon  the  fire, 

sprinklers,  j^  holds  the  water  back  and  turns  it  on 
when  needed,  and  in  this  way  resembles  an  ordinary 
water  faucet.  The  faucet  is  turned  on  by  hand,  while 
the  sprinkler  is  started  by  heat,  which  makes  it  auto- 
matic. Sprinklers  are  square  or  circular  plates  having 
one  or  more  openings,  and  are  set  in  pipes  in  the  ceilings 
of  rooms  at  greater  or  lesser  intervals.  The  pipes  are 
connected  to  large  vertical  pipes,  which  are  supply  pipes, 
and  these  connect  with  the  source  of  water  supply. 

The  sprinkler  head  is  sealed  under  normal  conditions, 
so  that  the  water  in  the  pipe  cannot  escape.  When  the 
temperature  in  the  vicinity  rises  to  a  certain 
SSkilr^^  intensity,  say  a  hundred  and  fifty-five  or  a 
hundred  and  sixty  degrees  Fahrenheit,  the 
seal  is  automatically  broken.  The  seal  is  made  of  a 
fusible  solder  which  melts  at  a  fixed  temperature.  By 
making  the  seal  of  solders  that  melt  at  different  degrees 
of  heat,  sprinklers  may  be  made  to  begin  to  operate  at 
any  temperature,  and  many  are  made  for  high  temper- 


FIRE  PREVENTION  305 

atures,  as  two  hundred  and  eighty-five  or  three  hundred 
and  sixty  degrees  Fahrenheit.  When  the  seal  is  broken, 
the  water  bursts  forth.  The  head  is  usually  provided 
with  a  splash  plate  against  which  the  water  is  forced, 
and  this  causes  it  to  fall  hke  a  shower.  A  single  head 
drenches  like  rain  an  area  of  from  eighty  to  a  hundred 
square  feet.  Sprinkler  heads  are  so  dis- 
tributed in  the  ceiling  of  a  room  that  the  S^heads^°° 
water  from  them  covers  the  entire  floor  with- 
out overlapping. 

The  automatic  sprinkler  may  be  the  means  of  giving 
an  alarm,  and  frequently  it  is  the  first  alarm.     Attached 
to  the  main  supply  pipe  is  an  alarm  valve 
which  is  a  device  so  constructed,  that  the  flow  aiarr^^*^*^ 
of  water  through  it  causes  the  operation  of  an 
electric  or  a  mechanical  gong.     The  gong  may  be  either 
in  a  central  place  in  a  building  or  in  an  outside  office. 
The  use  of  both  kinds  of  gongs  gives  the  best  protec- 
tion.    Many  instances  are  known  where  the  first  inti- 
mation of  fire  to  a  watchman  has  come  from  an  alarm 
operated   with   the   automatic   sprinkler   system.     The 
modest  Httle  sprinkler,  almost  out  of  sight  in  the  ceiling, 
is  a  great  fire  fighter  in  putting  out  fires  at  their  start 
as  well  as  a  valuable  alarm  giver. 

The  automatic  sprinkler  is  an  outgrowth  of  the  per- 
forated pipe  sprinkler.     This  is  a  system  of  perforated 
pipes  placed  close  to  the  ceilings  of  the  rooms  Perforated 
to  be  protected.     The  perforated  pipes   are  pipe 
connected  with  supply  pipes  leading  to  the  spnnkiers. 
source  of  water  supply.     When  fire  breaks  out,  the  water 
is  turned  into  the  supply  pipes,  then  to  the  perforated 
pipes,  and  by  them  it  is  discharged  over  the  area  served. 
The  system  is  frequently  used  in  cellars  and  out-of-the- 
way  places,  where  it  is  difficult  for  firemen  to  reach  with 
hose  and  nozzle.     Most  cities  have  strict  regulations 


3o6  ECONOMICS   OF  EFFICIENCY 

regarding  the  installation  of  perforated  pipes,  and 
specifications  and  standards  to  be  rigidly  followed  with 
the  pipes  used. 

A  pail  of  water  is  the  fire  extinguisher  which  is  most 
commonly  used.  The  fire  pail  is  cheap,  may  be  placed 
anywhere,  and  its  use  is  understood  by  every 
one.  The  chief  objection  is  that  it  is  used  for 
other  purposes,  and  is  not  always  filled  with  water.  As 
a  result,  when  needed,  it  is  often  empty,  and  often  not 
found  in  its  place.  Fire  pails  should  be  placed  in  con- 
spicuous and  convenient  places,  always  kept  filled  with 
water,  and  never  allowed  to  be  used  for  other  purposes. 
In  stores,  offices,  and  other  places,  people  object  to  the 
inartistic  appearance  of  rows  of  pails,  painted  bright 
red,  and  labeled  ''Fire."  Bucket  tanks  are  used  in 
their  place.  These  are  metal  or  wooden  tanks  or  barrels 
filled  with  water,  in  which  are  placed  several 
pails.  If  fire  breaks  out,  the  cover  is  re- 
moved, and  the  water  is  dipped  out,  to  put  out  the  fire. 
Care  should  be  exercised  to  see  that  the  tanks  are  always 
filled  with  clean  water,  and  that  pails  are  ever  ready  for 
use.  Where  oil,  paints,  or  inflammable  liquids  are  used, 
it  is  well  to  have  part  of  the  pails  filled  with  clean  dry 
sand,  because  with  burning  oil,  sand  is  more  effective 
than  water. 

Many  devices  have  been  invented  for  providing  ready 
means  for  use  in  case  of  fire  in  addition  to  the  ordinary 
Chemical  ^^^  P^-il-  The  most  successful  and  the  most 
extin-  widely  used    is    the    chemical    extinguisher, 

guisher.  which  is  a  small  tank  having  attached  at  one 
end  a  small  hose  for  the  purpose  of  directing  a  stream 
of  water.  The  tank  contains  about  two  and  a  half  gal- 
lons of  water  in  which  is  placed  some  bicarbonate  of  soda, 
and  at  the  top  is  suspended  a  small  bottle  of  sulphuric 
acid  with  a  loose  stopper.     When  the  tank  is  turned 


FIRE  PREVENTION  307 

upside  down,  the  sulphuric  acid  flows  out,  mixes  with 
the  soda  solution,  and  gives  forth  carbonic  acid  gas. 
The  water  carries  the  carbonic  acid  gas,  which  greatly 
assists  in  putting  out  flames.  The  gas  performs  another 
function.  In  keeping  the  water  in  the  tank 
under  certain  pressure,  it  makes  it  possible  to  ope7ate. 
throw  the  stream  some  little  distance.  Pails 
of  water  and  chemical  fire  extinguishers  are  fire  fighters 
which  may  be  used  by  every  one,  and  their  presence  in 
sufficient  and  adequate  numbers  should  be  found  in 
every  factory,  store,  and  office.  Chemical  extinguishers 
should  be  regularly  inspected,  and  recharged  at  certain 
periods  of  time.  There  are  many  varieties  of  small  fire 
extinguishers,  as  hand  grenades,  which  are  glass  bottles 
of  chemical  solutions  to  be  thrown  on  the  fire,  dry 
powder  extinguishers,  or  tubes  filled  with  bicarbonate  of 
soda  which  give  off  carbon  dioxide  when  heated,  etc. 

A  protective  measure  which  is  more  important  in  a 
large  building  than  in  a  small,  is  the  standpipe  with 
hose  attachments.  A  fire  standpipe  is  a  line  of  g^^^^  .  ^ 
pipe  to  supply  water  to  hose  connections  at 
various  places  along  the  pipe.  In  a  large  building,  a 
number  of  these  pipes  is  necessary  and  there  should 
be  hose  connections  on  every  floor.  The  hose  used  should 
be  of  standard  size  and  quality,  and  should  be  kept 
folded  on  racks  rather  than  rolled.  The  water  supply 
may  come  from  a  tank  on  the  roof  or  from  the  city 
system.  A  tank  is  always  advisable  on  a  high  building, 
but  is  only  temporary  until  the  city  fire  de-  pj.gj.autions 
partment  is  able  to  make  connections,  and 
force  water  up  with  fire  pumps.  A  standpipe  is  supposed 
to  be  only  necessary  for  high  buildings,  as  it  does  away 
with  long  stretches  of  hose,  but  it  is  equally  important 
in  buildings  of  three  stories.  Whenever  standpipes  are 
installed,  care  should  be  taken  to  get  adequate  water 


3o8  ECONOMICS   OF  EFFICIENCY 

supply,  and  that  with  sufficient  force.  The  hose  and  all 
apparatus  used  should  be  regularly  inspected  and  tested. 
Axes  and  hooks  should  be  placed  in  accessible  and 
convenient  places  on  each  floor  of  a  building. 

A  third  problem  is  confining  a  fire  or  preventing  its 
spread.  This  has  to  do  with  confining  a  fire  to  as  small 
a  space  as  possible,  and  to  preventing  a  building  from 

taking  fire  from  the  outside.  Buildings  are  of 
bSidSgs.       two  kinds,  fireproof  and  non  fireproof.     The 

fireproof  building  is  one  with  walls  of  brick, 
stone,  cement,  or  metal;  with  floors  of  cement,  stone, 
or  brick;  with  partitions,  ceilings,  windows,  trim, 
and  doors,  of  metal  or  fire-resisting  material;  and 
with  stairways  of  stone  or  metal  and  inclosed  by 
fireproof  walls.  These  buildings  should  be  supphed 
with  automatic  sprinklers,  standpipes,  and  chemical 
extinguishers.  If  a  fire  occurs,  it  is  confined  to  the 
floor  or  room  where  it  starts.  If  all  buildings  were  so 
constructed,  our  fire  loss  would  dwindle  to  a  small  frac- 
tion of  what  it  is  to-day.  In  New  York  City,  and  in 
other  places,  many  buildings  are  called  fireproof  which 
are  not.  They  usually  have  open  stairways,  wooden 
partitions,  doors,  floors,  windows,  and  trim,  and  here  is 
where  the  fire  hazard  lies.  In  Europe,  practically  all 
city  buildings  are  constructed  of  fireproof  materials. 
The  Consul-general  of  Vienna  reports  that  there  is  no 
case  known  in  that  city  where  fire  has  extended  beyond 
the  building  in  which  it  originated,  and  cases  are  hardly 
ever  known  where  fire  extended  beyond  the  floor  where 
it  started. 

A  fourth  problem  has  to  do  with  the  protection  of 

Hfe  in  case  of  fire.  The  ordinary  outside  fire 
ofhie^^^^      escape  is  the  usual  means  provided  for  escape 

from  fire.  Fire  escapes  should  at  all  times  be 
kept  clear  of  articles  and  rubbish.     Exits  to  them  should 


FIRE  PREVENTION  309 

be  clearly  marked,  and  passageways  should  at  all  times 
be  kept  clear.  Windows  to  fire  escapes  should  be  large 
enough  to  allow  a  grown  person  to  pass  quickly  and 
easily  through,  and  should  be  made  of  wire  glass.  All 
doors  leading  to  fire  escapes  or  other  means 
of  exit  should  open  outward  and  be  fireproof. 
If  sKding  doors  are  used,  no  obstruction  should  be 
placed  in  the  way  of  their  sliding  freely  backward.  Doors 
and  windows  should  be  cut  down  to  the  level  of  the  floor 
and  the  platform  of  the  fire  escape  should  be  also  on  this 
level.  Outside  fire  escapes  are  usually  inadequate  in 
case  of  fire.  Employees  are  not  accustomed  to  their 
use,  and  usually  do  not  use  them  except  as  a  last  resort. 
Fire  escapes  allow  only  a  slow  means  of  exit,  because  not 
being  accustomed  to  cHmbing  down,  a  person  moves  very 
slowly.  Fire  frequently  breaks  through  below  the  es- 
cape and  prevents  flight  by  this  method.  Fire  experts 
throughout  the  country  declare  that  the  fire  escape  is 
unsatisfactory,  should  in  future  be  discarded,  and  other 
methods  adopted. 

Thousands   of   buildings   throughout   the   land   have 
wooden  stairways  open  or  inclosed  with  wooden  parti- 
tions.    When  fire  starts,  it  rushes  with  great  rapidity 
from  floor  to  floor  through  these  stairways.  Dangers  in 
and  makes  flight  by  means  of  stairs  impos-  wooden 
sible.     The  open  wooden  stairway  is  a  menace  staircases, 
to  property  and  to  Hfe.     The  law  should  insist  that  all 
wooden  stairways  be  removed,  and  be  replaced  by  fire- 
proof  stairs   inclosed  with   fire-resisting   materials.     A 
reasonable  safety  will  then  be  afforded  employees  who 
will  be  able  to  descend  the  stairs  in  safety.     Stairway 
exits  should  be  distinctly  marked,  and  the  passageways 
thereto  should  always  be  clear  and  unobstructed. 

The  best  fire  escape  for  any  factory  or  building  is  the 
so-caUed  Philadelphia  fire  tower.     It  consists  of  a  flight 


3IO  ECONOMICS   OF  EFFICIENCY 

of  stairs  leading  to  the  ground,  and  inclosed  in  a  tower 
of  brick  or  fireproof  material.     The  tower  is 
Sxetower^^  separate  and  apart  from  the  rest  of  the  build- 
ing.    Its  construction  should  be  such  that  it  is 
absolutely  fire-  and  smokeproof .     From  each  floor  there 
is   a    fireproof    balcony    leading    to    the    tower.      The 
tower  is  the  safest  and  best  of  all  fire  escapes.     An- 
other type  of  fire  escape  is  the  outside  stairs 
Outside         which  are  regular  fireproof  stairs  placed  on  the 
stairs.  outside  of  a  building.     They  are  reached  by 

doors  passing  out  from  the  various  floors,  and 
these  should  shde  or  open  outward  and  be  fireproof. 

The  fire  wall  is  gaining  favor  as  a  protection,  and  a 
safeguard  to  life.     The  simplest  form  is  to  have  a  fire- 
.         proof   wall   divide   a   building   from   top   to 
bottom  into  two  parts.     If  a  building  covers 
a  large  area,  more  than  one  wall  should  be  built.     The 
doors  on   every  floor  should  be  fireproof  and   should 
never  be  locked.     Fireproof  walls  should  be  compulsory 
in  every  building  over  three  stories,  whether  fireproof 
or  not.     The  wall,  besides  being  a  safeguard  to  the  lives 
of  employees,  is  also  of  great  value  in  confining  a  fire. 
An  important  question  in  safeguarding  life  is  that  of 
overcrowding.     The  number  of  persons  which   should 
be  allowed  on  a  floor  depends  upon  the  exits 
^  vercrow  -    ^^^    ^^^q   £re   protection,    and   whether    the 
building  is  non-fire-  or  fireproof.       The  law 
should  be  severe  in  compelling  a  sufficient  number  of 
exits,  and  should  limit  very  materially  the  number  of 
people  allowed  if  fire  precautions  are  not  used.     The 
number  of  persons  which  should  be  allowed  on  a  floor 
of  any  building,  where  more  than  fifty  persons  are  em- 
ployed,   should   be   ascertained   by    the   fire 
commissioner  of  the  town  or  city  where  the 
building  is  located.     The  number  should  be  posted  in 


FIRE   PREVENTION  311 

a  conspicuous  place  on  every  floor  of  the  building, 
and  if  the  number  is  exceeded,  the  proprietor  should 
be  notified,  and  if  the  number  is  not  reduced,  he  should 
be   severely  punished. 

In  factory  and  ofhce  buildings,  and  in  stores,  where 
more  than  twenty-five  persons  are  regularly  employed 
above  the  second  story,  the  use  of  the  fire  drill  „,     ^  .„ 

T?        1  t-      ij     1.      Fire  drill. 

IS    very    necessary.     Employees    should    be 
shown  where  the  stairways  and  exits  are,  told  which  to 
use,  and  the  means  of  reaching  them.     A  fire  drill  is 
extremely  useful  in  preventing  panic  at  time  of  fire. 
The  importance  of  keeping  all  passageways  to  exits  open 
and  clear  should  be  strongly  emphasized.     A 
fire  drill  should  be  held  at  least  once  every      ^° 
month  under  the  supervision  of  one  of  the  members  of 
the  local  fire  department.     It  serves  to  constantly  bring 
to  the  mind  of  the  employer  and  employee  the  constant  pos- 
sibility of  fire,  and  the  necessity  of  using  every  possible 
precaution  to  prevent  it.     The  employees  in  a  building 
of  more  than  two  stories  in  height  should   frequently 
have   their   attention  drawn   to  the  exits.     Illustrated 
lectures  should  be  occasionally  given  upon  precautions 
to  prevent  fire,  and  what  should  be  done  in  case  of  fire. 
Fire  protection  is  a  science  in  itself.     It  pays  every 
employer  to  have  his  premises  regularly  inspected  by  a 
competent   fire   protection   engineer.     Every  pij-e  pro- 
precaution  should  be  taken  to  prevent  a  case  tection  a 
of  fire,  and  every  possible  means  adopted  to  science, 
put  a  fire  out  as  soon  as  possible  after  starting,  to  confine 
its  spread,  and  to  protect  occupants  of  the  building. 
Employers   and    employees    alike   play    an    important 
role  in  reducing  our  great  loss  from  fire.     If  we  could 
lower  our  loss  to  what  it  is  in  Germany  or  Austria,  what 
a  great  saving  would  result  in  material  resources  and 
what  a  benefit  to  worker  and  to  employer  ahke. 


312  ECONOMICS  OF  EFFICIENCY 


QUESTIONS 

1.  Compare  fire  losses  in  Europe  with  those  of  the  United 
States. 

2.  What  are  the  functions  of  fire  prevention? 

3.  Give  the  chemistry  of  fire. 

4.  What    is    spontaneous    combustion?     Mention    favorable 
conditions. 

5.  Give  the  causes  of  fire. 

6.  What  precautions  should  be  taken  in  electric  wiring? 

7.  What  are  the  dangers  from  open  spaces?    How  may  they 
be  eliminated  ? 

8.  What  is  the  automatic  fire  alarm?    How  should  it  be  in- 
stalled ? 

9.  Give  a  good  fire  patrol  system. 

10.  What    is    the    automatic    sprinkler?    What    precautions 
should  be  taken  in  installation? 

11.  Mention  various  kinds  of  automatic  alarms. 

12.  What  is  the  chemical  fire  extinguisher?    What  precautions 
should  be  taken  to  keep  it  in  good  condition  ? 

13.  What  precautions  should  be  taken  to  protect  life  in  case  of 
fire? 

14.  What  is  the  importance  of  the  fire  drill  ?    How  may  the  fire 
drill  be  installed  ? 

15.  What  precautions  should  be  taken  in  the  case  of  fire  escapes  ? 


REFERENCES 

Books 

J.  S.  Braidwood,  "Fire,  Its  Prevention  and  Extinguishers"; 
E.  F.  Croker,  "Fire  Prevention"  ;  Crosby  and  Fiske,  "Hand  Book 
of  Fire  Protection" ;  J.  C.  Duncan,  "The  Principles  of  Industrial 
Management,"  Ch.  X ;  J.  K.  Freitag,  "  Fire  Prevention  and  Fire 
Protection"  ;  H.  Ingle,  "The  Chemistry  of  Fire  and  Fire  Preven- 
tion," Insurance  Engineering  Hand  Book  of  Public  Safety,  Newark, 
N.  J.,  1911 ;  P.  J.  McKeon,  "Fire  Prevention"  ;  New  York  State 
Factory  Investigating  Commission,  "The  Fire  Problem,"  Report, 
1913,  Vol.  I,  pp.  53-89;  H.  F.  J.  Porter,  "The  Fire  Hazard," 
New  York  State  Factory  Investigating  Commission,  Prehminary 
Report,  1912,  Vol.  I,  pp.  151-199;  The  Spectator  Company, 
"Fire  Prevention  and  Protection";    G.  V.   Steeb,   "Agents'  and 


FIRE  PREVENTION  313 

Inspectors'  Pocket  Book  of  Fire  Protection";  E.  Von  Schwartz, 
''Fire  and  Explosion  Risks";  J.  P.  Whiskeman,  "The  Fire  Haz- 
ard," New  York  State  Factory  Investigating  Commission,  Report, 
1913,  Vol.  2,  pp.  613-666. 

Articles 

J.  M.  Bessey,  "Fire  Waste,"  Independent,  Vol.  74,  pp.  626-631 ; 
B.  Blackburn,  "Elevated  Tanks  for  Fire  Protective  Service," 
Engineering  Magazine,  Vol.  44,  pp.  385-392;  "Chemical  Fire 
Extinguishers,"  Scientific  American  Supplement,  Vol.  77,  p.  139; 
E.  F.  Croker,  "Practical  Fire  Prevention,"  Engineering  Magazine, 
Vol.  43,  pp.  373-377;  "Electrical  Fire  Protection,"  Scientific 
American,  Vol.  109,  p.  215 +  ;  P.  Evans,  "Fire  Waste,"  Survey, 
Vol.  26,  pp.  496-507;  "Fire  Protection  for  Factory  Workers," 
Industrial  Engineering,  Vol.  13,  pp.  411-417;  E.  V.  French, 
"  Control  of  Fires  through  Scientific  Methods,"  Scientific  American 
Supplement,  Vol.  72,  pp.  34-35  ;  J.  Johnson,  "Recent  Progress  in 
Fire  Prevention  and  Fire  Fighting  in  New  York  City,"  American 
City,  Vol.  9,  pp.  203-208;  S.  G.  Koon,  "Training  the  Factory 
Force  to  Fight  Fire,"  Factory,  Vol.  9,  pp.  520  +  ;  P.  J.  McKeon, 
"Standards  of  Safety  from  Fire  in  Factory  Buildings,"  Human 
Engineering,  Vol.  I,  pp.  125-133  ;  H.  F.  J.  Porter,  "Taking  Fewer 
Chances  with  Fire,"  Factory,  Vol.  12,  pp.  409  +  ;  H.  F.  J.  Porter, 
"  Factory  Fire  Drills,"  Cassier,  Vol.  40,  pp.  177-186  ;  H.  F.J.  Porter, 
"Life  Hazard  in  Crowded  Buildings  due  to  Inadequate  Exits," 
Scientific  American  Supplement,  Vol.  76,  pp.  2-3  ;  "Safeguarding 
the  Factory  against  Fire,"  Industrial  Engineering,  Vol.  14,  pp.  15- 
24 ;  F.  P.  Walther,  "Automatic  Sprinkler  Protection  for  Industrial 
Plants,"  Engineering  Magazine,  Vol.  44,  pp.  79-90 ;  F.  P.  Walther, 
"Fire  Fighting  AppHances  for  Industrial  Plants,"  Engineering 
Magazine,  Vol.  44,  pp.  233-241;  F.  P.  Walther,  "Principles  of 
Fire  Resisting  Construction  for  Industrial  Plants,"  Engineering 
Magazine,  Vol.  44,  pp.  720-736;  I.  H.  Woolson,  "Elements  of 
Factory  Fire  Protection,"  Engineering  Magazine,  Vol.  43,  pp.  719- 
720. 


CHAPTER  XIV 

Wages 

The  problem  of  wages  has  been  a  perplexing  one,  and 
the  cause  of  dissension  and  strife  since  man  began  to 
Importance  work  for  man.  From  earliest  times,  the 
of  the  wage  chief  cause  of  dispute  between  employer  and 
question.  employee  has  been  what  should  be  paid  for 
labor.  With  the  introduction  of  the  factory  system,  and 
the  investment  of  large  sums  of  capital  in  the  industrial 
field,  the  wage  question  caused  the  opening  of  a  wide 
chasm  between  employers  and  employees.  Due  to  the 
struggle  over  wages,  trade  unions  came  into  existence 
to  protect  laborers,  and  employers'  associations  were 
formed  for  the  purpose  of  carrying  on  the  struggle  against 
labor.  The  question  of  what  constitutes  a  fair  wage 
has  led  to  countless  bloody  conflicts  between  employers 
and  employees,  causing  a  loss  of  millions  of  dollars,  as 
well  as  much  suffering  on  the  part  of  wage  earners  and 
those  dependent  upon  them.  During  the  past  year, 
the  struggle  between  employers  and  employees  over  the 
wage  question  has  been  waged  more  or  less  bitterly  in 
nearly  every  industrial  country.  When  one  sees  the 
bitterness  in  many  of  the  recent  struggles,  it  almost 
makes  one  believe  that  the  chasm  between  the  two 
great  factors  of  our  industrial  system  is  as  wide  as  it 
was  half  a  century  ago. 

The  question  arises,  Has  any  progress  been  made  in 
making  employers  and  employees  realize  that  their  in- 
terests are  not  antagonistic  but  one  ?     Many  answer  with- 

314 


WAGES  315 

out  hesitation  in  the  negative.  I  am  more  optimistic, 
and  firmly  believe  that  during  the  last  quarter  of  a  cen- 
tury, a  great  advancement  has  been  made  in  interests  of 
making  employers  better  understand  em-  employers 
ployees  and  vice  versa.  Every  day  employers  ^^^  ^^- 
are  realizing  that  employees  are  human  beings  ^  °^^^^  °°^' 
and  should  be  treated  as  such,  and  employees  are  also 
realizing  that  employers  are  necessities  in  our  industrial 
system,  and  should  have  their  rights  respected  and 
protected.  This  reahzation  is  gradually  bearing  fruit, 
and  impressing  upon  both  parties  the  fact  that  their 
interests  are  not  antagonistic,  but  one,  and  that  both 
should  put  their  shoulders  to  the  great  industrial  wheel 
in  order  to  make  America  what  she  should  be,  the  greatest 
industrial  country  in  the  world.  Employer  and  employee 
should  meet  on  common  ground,  the  one  willing  and 
anxious  to  give  to  labor  the  share  it  produces,  and  the 
other  contented  with  that  share.  The  two  should  be 
brothers  in  a  great  industrial  brotherhood,  and  work 
for  each  other's  interests,  and  not  like  two  enemies,  each 
stealthfuJly  watching  every  move  made  by  the  other, 
suspicious  that  it  is  for  exploitation. 

The  wage  problem  is  important  with  every  employer, 
because  upon  its  successful  solution  depends  efficiency. 
Efficiency   is    absolutely   impossible    with    a  Requisites 
working  force  dissatisfied  with  its  pay.     The  for  soiu- 
solution  of  the  wage  question  lies  largely  in  tion  of  wage 
the  appKcation  of  a  system  of  wage  payment  ^^°   ^^' 
that  appeals  to  both  parties  as  being  essentially  Just, 
and  one  that  is  adapted  to  the  varying  conditions  of  our 
modern  industrial  system.     It  is  folly  to  advocate  a 
standard  system,  because  such  is  impossible.     Frequently 
several  systems  of  wage  payment  are  found  in  the  same 
estabhshment,  all  giving  satisfaction  and  working  toward 
greater  efficiency.     It  cannot  be  too  strongly  empha- 


3i6  ECONOMICS  OF  EFFICIENCY 

sized  that  only  with  satisfaction  on  the  part  of  the  labor- 
ing force  with  wages  received  may  efficiency  be  at- 
tained. 

There  are  two  parties  to  the  wage  problem,  the  one 
who  pays  and  the  one  who  receives  wages.  It  is  natu- 
Parties  to  ^al  for  the  employer  to  try  to  get  all  the  work 
wage  he  can  for  the  wages  that  he  gives,  and  for  the 

problem.  worker  to  try  to  get  all  the  money  he  can  for 
the  work  that  he  does.  The  meeting  of  employers  and 
employees  in  order  to  try  to  adjust  their  differences 
gave  rise  to  the  different  systems  of  wage  payment. 

Until  the  last  quarter  century,  employers  gave 
little  heed  to  justice  and  equity  in  dealing  with  em- 
Former  ployees.  They  took  every  possible  advantage 
attitude  of  to  drive  as  hard  bargains  as  they  could  in 
employers.  }i2i'ing  labor.  The  average  employer  beheved 
that  the  cheaper  he  got  his  labor,  the  lower  would  be 
his  costs,  and  the  greater  his  profits.  Little  did  he  care 
for  the  laborers,  as  long  as  he  could  drive  them  to  put 
forth  greater  efforts.  He  was  blind  to  the  immediate 
relation  between  wages  and  efficiency,  as  well  as  between 
the  hygienic  and  sanitary  conditions  of  the  working  place 
and  efficient  work  by  laborers.  Wage  earners  for  self- 
preservation  were  driven  to  unite  and  to  deal  with 
employers  collectively  through  unions.  Employers  are 
largely  to  blame  for  the  bitterness  which  existed  for  a 
century  after  the  introduction  of  the  factory  system, 
and  which  is  found  even  to-day  in  many  plants.  The 
average  employer  until  recently  firmly  beheved  that  it 
paid  to  drive  workers,  by  every  possible  means,  to  in- 
creased efforts.  Workers  were  to  him  simply  cogs  in 
the  great  industrial  wheel,  and  were  treated  Hke  inani- 
mate objects  rather  than  human  beings  with  feelings  and 
rights.  With  history  showing  that  employers  seized 
every  opportunity  to  lower  wages,  is  it  a  wonder  that 


WAGES  317 

employees  are  to-day  suspicious  of  any  innovation  on 
the  part  of  employers  ? 

One  of  the  greatest  tasks  that  the  new  efhciency  move- 
ment  has    to   overcome   is    the   deep-rooted    suspicion 
of  employees  against  employers.     The  chief  solution 
cause  of  this  attitude  has  been  the  struggle  of  wage 
over  wages.     Wages  are  of  the  greatest  im-  problem 

,  ,  1  rrii  and  success, 

portance  to  every  employer.  They  are  usu- 
ally the  cause  of  strikes,  and  are  the  chief  cause  of 
friction  and  antagonism  between  the  two  parties.  Effi- 
ciency, with  its  demands  of  interest,  enthusiasm,  and 
loyalty  on  the  part  of  the  worker  in  the  success  of  the 
enterprise  cannot  be  approached,  unless  there  is  satis- 
faction with  both  parties  over  the  wages  paid.  Wages 
may  therefore  be  emphasized  as  the  first  important 
problem  for  every  employer  seeking  efficiency  to  solve. 
The  wage  question  is  one  which  every  employer  must 
solve,  and  his  success  in  reaching  greater  efficiency  largely 
depends  upon  its  solution. 

There  are  many  ways  of  paying  labor.  With  some 
kinds  of  work  only  one  method  of  payment  is  possible, 
while  with  others  different  methods  may  be  nq  standard 
used.  A  method  which  proves  successful  in  methods  for 
one  case  may  not  in  another.  Because  a  cer-  ^  plants, 
tain  system  of  payment  is  satisfactory  in  one  plant,  an 
employer  should  not  take  it  for  granted  that  it  will  be 
in  his.  Before  it  is  introduced,  a  careful  study  should 
be  made  of  the  plant,  and  the  result  may  prove  that  it 
will  fail  under  existing  conditions.  The  great  demand 
is  a  study  of  the  particular  plant,  and  a  decision  as  to 
the  best  method  for  efficiency,  remembering  at  all  times 
that  cooperation  is  a  necessity,  and  the  wage,  to  give 
that  requisite,  should  be  fair  and  just.  Cooperation 
cannot  be  obtained  by  the  mere  payment  of  wages,  or 
the  giving  of  gratuities,  but  the  chief  question  is  whether 


3i8  ECONOMICS  OF  EFFICIENCY 

or  not  the  wage  is  a  fair  one.  Another  thing  to  bear  in 
mind  is  that  no  matter  how  satisfactorily  a  method  of 
paying  wages  may  appeal  to  the  few,  that  the  solution 
of  the  wage  problem  rests  upon  its  satisfactory  appeal 
to  the  many. 

The  average  employer  usually  makes  the  mistake 
of  considering  only  the  amount  of  wages  earned  by  indi- 
Consider  vidual  members  of  his  working  force.  He 
what  is  fails  to  consider  what  has  been  done  to  earn 

done  to  the  wages.  There  is  fixed  in  his  mind  what 
earn  wages.  ^  worker  should  earn,  whether  working  by 
time  or  by  piece,  and  if  the  earnings  greatly  exceed  that 
amount,  he  is  at  once  convinced  that  the  pay  is  too 
high,  and  should  be  reduced.  This  attitude  is  one  which 
has  been  handed  down  from  generation  to  generation, 
and  must  be  changed  before  any  great  progress  can  be 
made  in  efficiency.  It  cannot  be  denied  that  each  worker 
is  vitally  interested  in  an  increase  of  wages,  and  it  is 
human  for  him  to  be  so.  Every  employer  is  interested 
in  a  reduction  of  wages  per  unit  of  output  in  his  place. 
Fairness  and  Justice  should  be  the  basis  of  deciding  the 
wage  which  the  one  is  to  receive,  and  the  other  to  give. 

In  a  working  force  are  found  men  of  various  degrees 
of  ability.  One  is  slow  in  movements  while  another  is 
Requisites  ■■  Q^i^k.  One  may  do  in  a  given  time  a  much 
for  a  proper  larger  amount  of  work  than  the  one  working 
^age  next  to  him.     One  is  more  skilled  than  an- 

system.  other.  The  question  to  solve  in  deciding 
upon  a  wage  system  is  to  discover  one  that  will  pay  each 
according  to  what  he  does,  rather  than  according  to  the 
time  that  he  serves.  Wherever  possible,  this  should  be 
done,  but  in  some  cases,  labor  must  be  paid  according 
to  the  time  served.  The  most  efficient  system  of  wage 
payment  is  that  where  a  worker  is  paid  according  to 
some  scheme  whereby  his  pay  is  directly  proportionate 


WAGES  319 

to  his  output.  The  ascertaining  of  a  fair  and  just  wage, 
and  the  willingness  of  employers  to  give  and  employees 
to  accept  it,  is  an  important  factor  in  assuring  coopera- 
tion and  efficiency. 

More  wages  to  the  average  individual  is  the  greatest 
encouragement  to  industry  and  progress.  Wages  should 
be  increased  to  the  point  of  contribution  by  Labor  is  not 
labor,  but  beyond  that,  the  only  possible  way  the  only 
to  increase  wages  is  to  make  labor  more  pro-  ^^c*?^  ^^ 
ductive.  The  efficiency  movement  has  for  its  ^^°  "^  ^°^' 
aim  the  making  of  labor  more  productive,  and  stands 
for  a  corresponding  increase  in  wages.  Employers 
should  be  willing  to  give  in  wages  what  is  justly  due 
labor.  When  employers  realize  that  it  is  a  business 
proposition  to  do  so,  and  that  they  have  no  right  to  what 
labor  actually  produces,  a  better  understanding  will 
exist  between  the  two  parties,  and  the  greater  part  of 
the  battle  for  efficiency  will  be  won.  Laborers,  on  the 
other  hand,  should  realize  that  there  are  factors  in  pro- 
duction assisting  in  increasing  output  other  than  labor. 
Buildings,  equipment,  machinery,  and  managerial  abihty 
contribute  their  share,  and  in  some  cases,  one  assists 
more  than  others.  Each  should  receive  its  share  accord- 
ing to  the  part  taken  in  production.  This  is  practically 
impossible  to  ascertain,  and  approximation  is  the  best 
that  can  be  done.  Laborers  and  employers  working 
together  should  try  to  ascertain  approximately  the  part 
each  takes  in  production,  and  each  should  be  willing 
that  the  other  receive  his  share. 

Employers  usually  recognize  the  fact  that  efficient 
men  are  worth  more  than  inefficient,  but  many  jj^^  ^^ 
do  not  know  how  to  introduce  a  scheme  of  introduce  a 
payment   that  will  pay   the  efficient  a  fair  ^^^^^^^^ 
wage   without    trouble    with    the  inefficient.   ^^^  ^^' 
It  necessitates  great  care  and  diplomacy.     The  workers 


320  ECONOMICS   OF  EFFICIENCY 

should  be  taken  into  confidence  and  shown  how  wages 
will  be  increased  by  following  the  instructions  of  the 
employer.  Patience  in  instruction  and  a  suitable  re- 
ward for  success  usually  win  out.  Employers  should 
always  bear  in  mind  the  deep-rooted  suspicion  of  em- 
ployees, against  any  innovation,  as  only  a  means  of 
exploitation.  The  suspicion  exists  and  may  be  over- 
come by  frankness,  but  if  it  is  not,  failure  of  any  new 
system  will  follow.  A  careful  study  of  conditions  is 
necessary  before  any  new  system  of  wages  is  decided 
upon,  so  that  the  one  selected  may  be  the  best  system  of 
reward  for  the  particular  kind  of  work  performed  in  a 
plant.  Openness,  frankness,  and  justice  on  the  part  of 
employers  in  their  dealings  with  laborers  always  pay, 
and  these  are  essential  in  any  system  of  wage  payment. 
Laborers  should  be  made  to  feel  that  a  change  is  for 
their  benefit,  and  that  it  is  for  the  purpose  of  making 
them  able  to  increase  their  wages. 

The  earhest  system  of  labor  was  a  form  of  servitude. 
The  lash  and  the  whip  were  the  chief  means  of  increas- 
Servitude  ^^S  the  output  of  laborers.  Sackcloth  cloth- 
earUest  ing  and  the  plainest  food  were  the  remunera- 
form  of  tion  for  services.  Under  serfdom,  the  lot  of 
the  workers  improved.  They  were  bound 
to  the  soil,  and  had  to  perform  certain  services  for  their 
lord  and  master.  Slavery  and  serfdom  gradually  broke 
down,  and  the  wage  system  took  their  place.  It  may 
be  noted  that  servitude  did  not  disappear  with  the 
introduction  of  the  wage  system,  but  the  two  existed 
side  by  side  for  years,  and  the  aboHshing  of  the  former 
came  much  more  slowly  in  some  industrial  countries 
than  in  others. 

Almost  simultaneously  with  the  breakdown  of  serf- 
dom, and  the  general  appearance  of  the  wage  system, 
the  laborer  became  the  center  of  restrictive  legislation. 


WAGES  321 

Rates  of   wages,  apprenticeship,   and  other  details  of 
labor  were  fixed  by  some  superior  authority.     Later,  the 
growth  of  industry  proved  that  the  restrictive  Restrictions 
measures  were  not  economic  and  just,  and  under  early 
they  gave  way  to  a  system  of  contract.     The  ^^se 
laborers  on  gaining  their  freedom  of  contract  ^^^  ^^^' 
were  found  to  be  almost  helpless  in  the  hands  of  grasp- 
ing employers.     The  contest  for  freedom  of   contract 
was   won   by   employers,   and   not    by    em- 
ployees.    Employers  foresaw  the  advantage  gys^em^ 
which  they  could  take  of   unprotected   and 
unorganized  labor,  and  how  they  could  profit  by  exploit- 
ing the  helpless  laborers.     The  poHcy  of    exploitation 
was  severe,  caused  much  suffering  on  the  part  of  workers, 
and  soon  drove  them  to  the  formation  of  unions  in  order 
to  protect  themselves. 

The  original  and  first  wage   system  was  paying   a 
laborer  for  the  time  that  he  worked.     From  the  earhest 
introduction  of  the  wage  system  until  to-day, 
time  wages  have  been  in  all  industrial  coun- 
tries the  commonest  form  of  paying  labor.     The  unit  of 
time  under  the  time  wage  system  may  be  an  hour,  day, 
week,  month,  or  year.     A  certain  amount  is  paid  for  a 
unit  of  time,  regardless  of  the  amount  of  work  performed. 
Wages  are  fixed  by  bargain  between  the  worker  and  the 
employer.     The  bargaining  may  be  done  col- 
lectively  at  the  dictation  of  a  labor  union 
which  fixes  a  minimum  rate,  or  it  may  be  done  by  the 
individual  workers  themselves  who  fix  their  wages  with 
their  employers.     The  wages  in  the  case  of  individual 
bargaining  depend  upon   two   factors,   the   relation  of 
supply  and  demand  of  labor  of  the  particular  grade,  and 
the  skill  of  the  laborer  in  bargaining,  but  in  the  average 
case,  the  latter  is  of  little  consequence. 

The   fundamental   principle   underlying   time   wages 


322  ECONOMICS  OF  EFFICIENCY 

is  that  a  certain  sum  of  money  is  equal  to  the  work 
_,.  of  a  certain  unit  of  time  spent  by  any  man 

never  fair  in  a  plant  doing  a  certain  kind  of  work.  The 
and  just  sum,  unless  it  is  fixed  by  unions,  may  vary 
*°  ^^'  from  place  to  place,  and  even  from  plant  to 

plant.  It  takes  for  granted  that  every  man  shoveHng 
sand  in  a  particular  plant  is  worth  two  dollars  for  ten 
hours'  work,  or  every  man  laying  brick  in  a  particular 
place  is  worth  five  dollars  for  eight  hours'  work.  It 
cannot  be  denied  that  there  is  always  a  difference,  and 
often  a  large  one,  in  the  quality  and  the  quantity  of 
work  performed  by  different  men  doing  the  same  kind 
of  work,  and  if  all  are  paid  ahke,  either  some  are  not 
paid  enough,  or  some  are  paid  too  much.  The  system 
of  paying  by  time  is  never  fair  and  just  to  all.  All  men 
are  born  free  and  equal,  but  all  are  not  born  with  the  same 
abiHty  or  capacity.  This  appHes  to  workers  of  all 
kinds,  and  should  as  far  as  possible  be  considered  in  fix- 
ing remuneration  for  work. 

Time  wages  present  many  disadvantages.  They  put 
all  men  on  the  same  level,  and  men  are  not  paid  accord- 
Disadvan-  ^^S  ^^  their  efficiency.  On  the  part  of  workers, 
tages  of  there  is  not  any  difference,  whether  one  man 
time  wages,  jg  more  efficient  than  another,  because  it  is 
practically  impossible  for  him  to  get  higher  wages  than 
others  of  his  group.  There  is  no  incentive  to  increased 
efforts,  diligence  in  work,  or  interest  in  what  is  being 

done.     The  good  employee  receives  the  same 
fjr  work.*'''^  pay  as  the  one  who  loafs,  so  he  has  httle  or 

nothing  to  gain  by  putting  forth  greater  efforts 
or  taking  more  interest  in  his  work.  The  fact  that 
extra  effort,  greater  skill,  or  more  interest  is  not  recog- 
nized stifles  ambition,  destroys  interest  of  the  laborer" 
in  his  work,  and  prevents  cooperation,  so  necessary  for 
efficiency.     The  industrious  and  efficient  employees  be- 


WAGES  323 

come  dissatisfied,  and  slacken  their  pace  to  that  of  the 
poor  and  inefficient.  The  employer  who  pays  time 
wages  usually  gets  the  efficiency  of  the  poor  laborer,  and 
there  is  a  tendency  to  level  speed  to  his  pace.  The  aver- 
age man  works  just  enough  to  hold  his  place,  and  where 
there  is  no  inducement,  the  question  arises,  why  should 
he  do  more.     Why  not  save  his  energy  for  other  things  ? 

Time  wages  foster  soldiering  and  loafing.  Many  men 
make  a  practice  of  soldiering  even  in  the  presence  of 
their  superiors,  believing  that  there  is  a  certain 
amount  of  work  to  be  performed,  and  the  less  soldiering, 
they  do,  the  more  employees  will  get  work, 
or  the  longer  will  their  jobs  last.  This  erroneous  and 
fallacious  idea  of  curtailing  efforts  to  increase  the  num- 
ber of  workers  or  to  prolong  work  is  current  among 
laborers.  Time  wages  foster  idhng  on  the  part  of  many 
who  develop  the  practice  of  awaiting  the  opportunity 
for  playing  pranks,  talking,  or  joking  with  their  fellow 
workers.  How  often  does  work  practically  cease,  when 
the  boss  is  called  away  to  other  parts  of  the  building  on 
some  business  errand,  and  at  the  first  sign  of  his  approach- 
ing return,  every  one  returns  to  work,  and  works  with 
greater  vim,  as  if  the  pace  was  kept  up  during  his  absence. 
A  worker  was  asked  why  such  advantage  was  taken  of 
his  employer,  and  his  reply  was  that  it  was  all  in  a  day, 
and  why  not  have  a  good  time  when  possible,  and  that 
the  pay  was  the  same  to  those  who  worked  faithfully, 
as  to  those  who  had  a  good  time  at  every  opportunity. 

A  great  amount  of  idleness  is  due  to  the  completion  of 
a  piece  of  work,  and  the  workman  waiting  patiently 
until  the  foreman  comes  with  another  job.   causes  for 
Little  or  no  effort  is  made  on  the  part  of  wasting 
workers  to  get  a  new  job,  as  soon  as  one  is  ^"^^• 
finished.     Why    not    take    advantage    of    a    little    rest 
because  it  amounts  to  the  same  thing  as  far  as  pay  is 


324  ECONOMICS  OF  EFFICIENCY 

concerned?  It  would  be  far  better  to  have  a  system 
whereby  it  would  interest  a  worker  to  keep  steadily  em- 
ployed, and  be  interested  in  the  amount  of  work  pro- 
duced from  his  efforts.  It  is  human  nature  to  take 
life  as  easy  as  possible,  and  with  a  worker  it  is  natural 
for  him  to  take  an  easy  pace  and  pay  little  or  no  heed 
to  what  he  does.  Workers  as  a  whole  prefer  to  sell  time 
rather  than  labor,  and  to  perform  in  the  time  the 
amount  of  labor   they   consider  proper  for   the  pay. 

Thousands  of  dollars  are  lost  annually  through 

idling  of  time  and  soldiering.  Frequently  time 
wages  cause  increased  activity  of  the  unions,  and  labor 
troubles.  The  more  industrious  and  efficient  men  find 
that  they  cannot  increase  their  pay  by  putting  forth 
greater  efforts,  or  being  more  efficient,  and  so  resort 
to  other  methods  to  try  and  obtain  the  result.  They 
get  all  laborers  performing  their  kind  of  work  to  demand 
an  increase  of  pay,  and  the  cry  from  both  the  efficient 
and  inefficient  is  for  more  pay.  A  strike  usually  follows, 
and  if  successful,  no  one  cares  whether  he  does  more 
work  or  not. 

Under  the  time  system,  it  cannot  be  said  that  an 
employer  is  totally  indifferent  to  the  output  of  workers. 
How  to  find  If  3.n  employee  is  found  frequently  loafing,  and 
what  a  man  his  output  is  below  what  is  considered  a  mini- 
does,  mum,  he  is  discharged,  but  the  discovery 
depends  on  his  attracting  the  attention  of  the  fore- 
man. The  loafer  usually  has  his  loafing  down  to 
almost  a  science,  so  that  it  is  easily  done  without  his 
being    caught.      Frequently,    a    worker    works    for    a 

long  time  far  below  the  minimum,  and  is  not 
a°sciSice^      discovered  because  his  foreman  has  a  large 

number  to  look  after,  and  his  attention  has  not 
been  directed  to  the  output  of  this  particular  worker. 
It  is  exceedingly  difficult  in  an  ordinary  plant  for  a  fore- 


WAGES  325 

man  with  several  men  under  him  to  pick  out  the  men  who 
are  not  doing  what  is  considered  the  minimum  amount 
of  work.  A  slow,  steady,  plodding  worker,  who  to  the 
eye  is  not  accompHshing  much,  may  in  reality  be  doing  a 
third  more  than  a  nervous,  quick-moving  worker.  Where 
there  is  no  incentive  to  increased  effort,  the  average 
worker  will  do  httle  more  than  is  necessary  to  hold  his 
job,  or  not  to  have  his  pay  decreased.  Even  then,  there 
are  so  many  ways  of  deceiving,  and  it  is  so  hard  to  get 
the  amount  of  output,  that  many  are  continued  for  a 
long  time  on  pay  when  they  are  far  below  the  average. 

In  spite  of  all  these  disadvantages,  time  wages  con- 
tinue to  be  the  commonest  form  of  remunerating  labor. 
Due  to  the  fact  that  it  is  the  only  system  Time  wages 
possible  in  many  classes  of  work,  time  wages  vs.  piece 
must  always  occupy  a  prominent  place  in  our  ^^*®^- 
industrial  system.  Nevertheless,  there  are  many  kinds 
of  work  where  other  forms  of  remuneration  are  better 
suited,  and  work  towards  greater  efhciency.  Wher- 
ever it  is  possible,  time  wages  should  be  replaced  by  a 
more  efficient  system  of  pay.  The  wage  system  which 
induces  men  to  put  forth  greater  efforts  is  one  where  the 
remuneration  is  in  some  way  directly  proportionate  to 
output.  Time  wages  should  be  discarded  and  piece 
rates  introduced  wherever  it  is  possible  to  measure  indi- 
vidual performance.  Where  work  cannot  be  measured 
in  units  produced,  the  time  system  is  the  only  way  of 
paying  labor,  as,  for  instance,  with  bookkeepers,  ffremen, 
engineers,  etc. 

An  increase  in  wages  and  a  chance  of  promotion  are 
two  chief  inducements  for  workers  to  take  an  interest 
in  work,  to  put  forth  greater  efforts,  and  to  induce- 
cooperate  for  the  success  of  a  business.     Where  ments  for 
these  inducements  are  lacking,  workers  are  ^°°^  ^°^^' 
liable  to  be  indifferent,  with  Httle  or  no  interest  in  work, 


326  ECONOMICS   OF  EFFICIENCY 

and  with  Kttle  desire  to  increase  output.  As  far  as  these 
inducements  are  present  and  before  workers  under  time 
wages,  the  more  satisfactory  will  be  this  system  of 
payment,  and  the  greater  will  be  the  interest,  coopera- 
tion, and  enthusiasm  of  workers  in  the  business,  and  the 
greater  their  efficiency.  Frequently,  promotion  and 
increase  in  pay  are  due  to  favoritism.  The 
foreman  takes  a  liking  to  a  worker,  and  at  the 
first  opportunity  increases  his  pay  or  promotes  him,  and 
pays  Kttle  or  no  attention  to  his  efficiency.  Often- 
times, a  capable  worker  is  not  promoted  or  increased  in 
pay,  due  to  the  fact  that  in  some  way  he  has  aroused  the 
anger  of  the  foreman.  Either  case  arouses  distrust  on 
the  part  of  workers,  and  causes  them  to  lose  interest  in 
their  work.  Promotion  in  the  ranks,  or  increase  in 
wages  due  to  favoritism,  fosters  antagonism  and  increases 
inefficiency. 

In  some  plants,  different  time  wages  are  paid  in  the 
same  class,  and  promotion  is  made  from  the  ranks. 
Methods  Increase  in  wages  is  based  as  far  as  possible 
forincreas-  on  efficiency.  The  more  efficient  men  are 
ing  wages,  rewarded  by  an  increase  in  pay,  and  the  great 
difficulty  is  the  ascertaining  of  those  who  deserve  the 
increase,  and  who  are  more  efficient  than  the  others. 
With  no  records,  extreme  care  should  be  exercised,  and 
favoritism  should  never  under  any  circumstances  be  a 
factor.  The  best  results  are  obtained  with  a  competent 
boss,  and  comparatively  few  men  under  his  direction. 
He  can  easily  by  close  observation  ascertain,  to  a  certain 
degree,  the  quality  and  the  quantity  of  work  of  each 
worker.  If  a  worker  knows  that  his  work  is  under 
observation,  and  that  if  he  increases  his  output,  his  pay 
will  be  increased,  there  is  an  inducement  to  put  forth 
greater  efforts.  Workers  should  also  be  assured  that  in 
case  of  a  vacancy,  the  more  energetic  and  efhcient  will 


WAGES  327 

be  promoted.  These  two  inducements  give  incentives 
for  more  efficient  work,  and  good  results  with  time 
wages. 

The  more  efficient  method,  wherever  conditions  are 
suitable,  is  to  get  individual  records,  and  to  base  in- 
crease of  pay  and  promotion  on  these.     Where 
work  is  of  the  same  class  and  gangs  are  small,  Jecords"^ 
the    boss    may   without    any    inconvenience 
keep  daily  records  of  each  of  his  men.     Pay  is  based  on 
the  records,  and  the  men  know  that  the  more  efficient 
will  receive  the  larger  pay.     A  great  amount  of  work 
by  its  very  nature  makes   record  keeping  absolutely 
impossible,  and  the  only  measure  of  efficiency  is  the 
close  observation  of  the  boss.     Wherever  the  character 
of  the  work  is  such  that  time  wages  are  the  only  possible 
means  of  payment,  care  and  judgment  should  Remedying 
be  exercised  in  bringing  all  under  observation,  faults  of 
and  making  all  know  that  they  are  observed,  *"^®  wages, 
and  that  good  work  will  be  rewarded.     If  this  is  done, 
many  of  the  faults  of  time  wages  will  be  remedied. 
Nevertheless,  where  it  is  possible  to  measure,  in  units 
of  production,  the  work  of  a  laborer,  the  most  efficient 
way  is  to  displace  the  old  method  by  piece  rates. 

The  piece  rate  system  is  where  a  man  is  paid,  not  for 
the  time  that  he  spends,  but  for  the  amount  of  work 
that  he  does.     It  is  not  of  recent  origin,  as 

I   •!  r        »  ••  .  t    Jriece  rates. 

strikes  lor  mcrease  m  piece  rates  occurred 
years  before  the  introduction  of  the  factory  system. 
The  factory  system,  nevertheless,  gave  great  impetus 
to  this  method  of  remuneration,  and  the  piece  rate 
system  increased  in  practice.  Employers  at  first,  and 
even  in  many  cases  to-day,  introduce  this  system  solely 
as  a  method  for  reducing  labor  costs.  Piece  rates,  to 
be  successful,  should  benefit  both  parties,  and  each  should 
be  willing  and  anxious  for  the  other  to  profit.     Piece 


328  ECONOMICS  OF  EFFICIENCY 

rates  have  caused  much  friction  between  employers  and 
employees,  because  they  are  usually  looked  upon  as 
.  a  means  to  force  extra  effort  with  lower  wages. 

Opposition  to  the  system  is  not  the  fault 
of  the  system,  but  is  due  to  ignorance  and  cupidity  on 
the  part  of  employers.  Employers  themselves  are 
largely  to  blame  for  the  many  failures  of  piece  rates, 
and  the  antagonism  on  the  part  of  employees. 

Where  friction  has  arisen  over  piece  rates,  it  has  been 
due  chiefly  to  stupid  methods  of  introduction.  No 
Friction  due  System  is  used  to  ascertain  the  proper  rates, 
to  stupidity  which  are  chiefly  based  upon  guess,  or  upon 
in  rate  the    judgment    of    foremen.     The    judgment 

^^*  based  on  past  experience  is  as  a  rule  far  from 

being  correct.  Some  employers  try  to  ascertain  the  time 
it  takes  to  perform  a  certain  task,  on  the  basis  of 
previous  records,  made  by  men  employed  on  time  wages. 
This  fails  to  account  for  the  fact  that  with  the  incentive 
offered  by  piece  rates,  the  output  of  the  worker  may 
vary  as  much  as  50  per  cent  over  time  rate.  Pre- 
vious records  are  inaccurate,  and  form  a  very  unsatis- 
factory basis  for  estimating  piece  rates.  Records  of 
past  performance  are  a  poor  indication  of  what  may  be 
done  by  capable  and  industrious  workers.  No  uni- 
form standards  in  the  performance  of  a  task  make  snap 
judgment  a  mere  guess.  The  guess  cannot  help  being 
inaccurate,  and  is  the  beginning  of  trouble.  By  fixing 
rates  according  to  methods  which  are  based  chiefly  on 
guess,  it  is  only  by  chance  that  any  kind  of  equitable 
rate  is  fixed.  The  whole  problem  of  piece  rates  is  the 
deciding  upon  rates  satisfactory  to  employer  and  to 
employee. 

Employers  do  not  make  sufficient  allowance  for  the 
increase  in  output  due  to  piece  rates,  and  the  rates  are 
usually   high.     A  large  increase  in  the  weekly  wages 


WAGES  329 

arouses  an  employer,  who  forgets  that  more  work  is  being 
done  than  under  time  wages,  and  as  soon  as  Rate  cutting 
the  wages  rise  above  25  or  30  per  cent,  he,  the  cause  of 
thinking  that  he  is  paying  his  workers  too  *^o^^^®- 
Hberally,  cuts  the  rate.  The  great  bane  of  piece-work  is 
rate  cutting.  In  the  past,  and  even  to-day,  many  em- 
ployers beheve  that  a  man  should  not  under  any  circum- 
stances earn  more  than  a  certain  sum,  working  either 
by  day  or  by  piece.  Where  wages  are  very  much  in- 
creased, the  average  employer  cannot  resist  the  tempta- 
tion to  cut.  This  has  been  the  cause  of  many  failures 
of  the  piece  rate  system  as  well  as  many  strikes.  If 
strikes  do  not  occur  with  rate  cutting,  bitterness  arises, 
as  the  average  worker  beheves  that  it  is  only  to  increase 
the  profits  of  the  employers.  Rate  cutting  causes  lazi- 
ness and  lack  of  interest  and  enthusiasm,  and  works 
toward  inefhciency  and  an  increase  of  costs. 

The  old  method  is  to  set  a  rate  and  leave  it  to  the 
worker  to  solve  the  problem  of  making  wages,  and  as 
soon  as  he  solves  it,  and  increases  his  wages  pjece  rates 
above  a  certain  amount,  to  cut  the  rate.  The  under  the 
workers  are  usually  responsible  for  keeping  °^^  system, 
machines  and  tools  in  condition,  and  for  getting  work 
to  and  from  the  machines.  The  employer  places  as 
much  as  possible  of  the  burden  of  getting  work  per- 
formed upon  his  men.  In  one  factory,  a  person  noticed 
that  the  employer  was  not  as  painstaking  as  formerly 
about  repairs,  tool  sharpening,  and  taking  care  of  ma- 
terials. On  being  asked  why,  he  answered:  ''I  have 
put  my  men  on  piece  rate,  and  it's  up  to  them  now.  If 
they  wish  to  earn  wages,  let  them  use  extra  care  to  see 
that  machines  are  in  repair,  and  the  goods  taken  care 
of."  This  old  practice  has  caused  an  endless  amount 
of  friction  between  employers  and  employees.  To  pre- 
vent friction,  rates  should  not  be  fixed  under  the  old 


330  ECONOMICS  OF  EFFICIENCY 

method,  since  it  is  almost  impossible  to  make  a  rate, 
without  the  necessity  of  later  readjusting  it,  and  this 
is  the  cause  of  the  failure  of  many  piece-rate  attempts. 

Employees  are  more  or  less  suspicious  of  making  too 
high  wages,  because  they  beheve  that  then  their  rates 
Piece  rates  will  be  cut.  It  is  a  known  fact  that  capable 
foster  workers  will  soldier  rather  than  make  wages 

soldiering.  j.-gg  ^lore  than  20  or  25  per  cent  above  day 
wages,  knowing  that  if  they  do,  rates  will  be  cut.  The 
capable  or  more  efficient  hold  back  for  the  slow,  who 
would  suffer  if  rates  were  cut.  The  fear  of  making  a 
record  which  might  be  used  for  a  cut  in  rate  causes  sol- 
diering. It  is  claimed  that  piece  rates  have  developed 
systematic  soldiering  to  a  remarkable  degree.  Workers 
after  one  or  two  cuts  decide  that  there  will  not  be  another 
if  soldiering  will  prevent  it.  Piece  rates  very  often 
under  the  old  method  decrease  efficiency.  The  men 
learn  that  the  management  is  wilKng  to  pay  a  certain 
amount  and  no  more,  and  soldier  so  as  to  make  their 
earnings  by  piece  rate  about  equal  to  it.  Even  to-day, 
the  bare  mention  of  piece  rates  causes  great  opposition 
on  the  part  of  many  employees.  This  opposition  is 
more  or  less  justified  by  the  experience  of  history  in 
the  working  of  the  system. 

Piece-rate  fixing  is  based  upon  two  factors,  the  task 
and  the  rate.  Rate  cutting  results  from  ignorance 
The  task  ^^^  carelessness  in  ascertaining  the  task  and 
and  the  in  fixing  the  rate.  If  these  defects  can  be 
rate.  remedied,  there  is  not  the  least  doubt  that 

piece  rate  would  prove  a  most  satisfactory  system 
of  paying  labor,  where  such  a  system  is  possible.  It 
solves  the  question  which  efficiency  sets  before  us  of 
how  to  encourage  and  reward  efforts  in  order  to  ac- 
compHsh  more  efficient  results.  To  obtain  efficiency, 
men  should  be  satisfied  that  they  are  getting  a  square 


WAGES  331 

deal,  and  are  receiving  a  just  and  fair  reward  for  their 
efforts  and  skill. 

Opposition  to  piece  rate  may  be  avoided  if  extreme 
care  is  used  at  the  outset  in  estabhshing  a  just  rate. 
This  demands  a  careful  study  of  conditions  How  to  es- 
precedent  to  its  installation.     The  task  and  tabiisha 
the  rate  should  be  properly  fixed,  and  then  i^strate. 
there  would  be  no  reason  for  a  cut.     The  whole  problem 
is  to  get  the  proper  piece  rate  at  the  outset,  and  to  ob- 
tain a  just  rate,  it  should  not  be  based  on  guess- 
work,  but  on  careful  study  and  investigation, 
in  order  to  ascertain  what  a  task  should  be,  the  time  it 
should  be  performed  in,  and  what  is  a  fair  and  just  rate, 
so  as  to  give  labor  its  just  reward  for  its  share  in  pro- 
duction.    The  best  and  the  only  proper  method  is  to 
ascertain  the  task  and  the  time  by  careful  time  and  mo- 
tion studies.     This  takes  the  work  of  fixing  the  task  and 
the  rate  out  of  the  hands  of  those  who  fix  them  by  guess, 
and  places  it  entirely  in  the  hands  of  specialists,  who  as- 
certain them  by  careful  observation,  scientific  study,  and 
experimentation.     By   ascertaining    the  time  in  which 
the  average  worker  under  ordinary  local  conditions  can 
perform  the  ascertained  task,  a  suitable  rate  can  easily 
be  determined  upon,  which  will  give  an  equitable  and 
just  rate,  fair  to  employer  and  to  employee  aHke. 

A  careful  study  should  be  made  of  factory  conditions, 
and  with  equipment  and  conditions  as  they  are,  the 
rate  should  be  such  that  the  average  man  will  Duties  of 
earn  from  30  to  60  per  cent  more  under  piece  the 
rates  than  he  would  under  time  wages.     Ex-  employer, 
treme  care  should  be  taken  that  it  is  not  necessary  to  work 
at  a  speed  which  is  injurious  to  health.     The  employer 
should  keep  his  equipment  thoroughly  up  to  date,  and 
materials  and  tools  always  on  hand  when  needed,  so  that 
there  is  no  unnecessary  delay  on  the  part  of  the  worker. 


332  ECONOMICS  OF  EFFICIENCY 

The  members  of  every  working  force  may  be  divided 
into  three  classes :  workers  below  the  average,  average 
workers,  and  workers  above  the  average.  It 
w(M±eTs°^  is  the  average  worker  who  should  be  carefully 
studied  in  making  tests  and  experiments  to 
decide  upon  task  [and  rate.  Tests  and  experiments 
should  determine  the  best  method  and  the  time  required 
The  average  ^^  ^^^  average  man,  to  do  the  task  with  the 
worker  is  factory  equipment.  The  method  should  be 
the  one  to  standardized  and  the  workers  instructed  in  its 
^^  ^'  use.     The  equipment  should  always  be  main- 

tained in  the  same  degree  of  excellence  as  when  the  ex- 
periments were  made.  In  the  determination  of  the 
rate,  account  should  be  taken  of  the  fact  that  the  men 
will  become  more  expert  with  time,  so  that  what  might 
be  considered  a  somewhat  low  rate  at  first  may  be  satis- 
factory after  a  short  experience.  In  fixing  the  time, 
allowance  should  be  made  for  necessary  delays,  and 
where  the  work  is  very  exacting,  time  should  be  allowed 
for  rests  in  order  to  prevent  injurious  fatigue. 

The  men  below  the  average  should  be  instructed, 
and  if  they  cannot  make  the  average,  some  other  kind 
The  men  ^f  work  should  be  found  for  them.  There 
below  the  should  be  no  maximum  wage  Kmit  to  the  more 
average.  efficient,  and  their  wages  should  depend  upon 
their  degree  of  efficiency.  By  extreme  care  in  prepara- 
tion and  in  proper  installation,  a  rate  may  be  obtained 
which  will  be  fair  and  just  to  both  employer  and  em- 
ployee, and  which  will  not  give  cause  for  cutting.  The 
increased  interest  and  loyalty  of  the  men  in  the  work 
will  make  them  cooperate  with  the  employer  for  increased 
efficiency. 

An  important  precaution  in  piece  rates  is  that  the 
workmen  should  not  be  allowed  to  overfatigue  them- 
selves, or  work  to  the  point  of  injuring  health.     The  rate 


WAGES  333 

should  be  such  that  overfatigue  is  not  necessary  to  earn  a 

good  wage.     The  ambitious  should  not  be  allowed  to  tax 

their  strength  in  their  endeavors  to  earn  a  few 

more  dollars.     Care  in  not  allowing  workers  precautions. 

to    overtax    their    strength,    which    impairs 

their  health  and  efhciency,  is  an  important  duty  of  the 

management.     The  workers  should  be  taught  the  evil 

consequences  of  overtaxing  strength,  and  how  it  brings 

a  loss  of  earning  power  that  more  than  offsets  the  few 

extra  dollars  earned  in  the  present. 

In  every  instance,  workers  should  be  taken  into  con- 
fidence by  employers  in  ascertaining  rates  and  in  the 
installation  of  a  piece-rate  system.  The  first  workers' 
essential  is  the  cooperation  of  employees,  which  share  in 
may  be  obtained  only  by  being  frank,  open,  ^^^s  rates, 
and  just  with  them.  Employees  should  be  shown  that 
piece  rates  are  for  their  benefit,  and  will  enable  the 
average  employee  to  earn  a  more  equitable  wage,  and 
the  more  efficient,  a  reward  proportionate  to  their  output. 
The  necessity  of  making  proper  tests  to  ascertain  proper 
rates  should  be  carefully  explained.  As  soon  as  em- 
ployees learn  that  there  is  nothing  underhand,  and  that 
the  change  is  for  their  benefit,  they  will,  in  the  majority 
of  cases,  cooperate,  and  their  cooperation  assures  success. 
Employees  should  assist  in  ascertaining  the  proper  task, 
and  be  consulted  as  to  the  rate,  and  when  a  satisfactory 
rate  is  obtained,  the  employer  should  bind  himself  to 
maintain  it  without  cutting,  unless  unforeseen  circum- 
stances should  arise  that  would  make  adjustment  nec- 
essary. But  adjustment  should  take  place  only  with 
the  cooperation  of  the  workers.  The  average  worker  is 
a  fair-minded,  open,  and  just  person,  and  will  every  time 
meet  the  employer  halfway  and  do  his  part  to  obtain  a 
fair  wage.  If  the  average  employer  were  more  cognizant 
of  this  fact,  and  would  be  just,  open,  and  fair,  we  would 


334  ECONOMICS   OF  EFFICIENCY 

have  less  friction,  more  cooperation,  and  greater  effi- 
ciency on  the  part  of  the  working  force. 

It  has  been  charged  that  piece  rates  rest  upon  a  fallacy 
that  permanent  just  rates  can  be  predetermined.  This 
is  quite  true,  because  conditions  are  always 
may  be^  ^^^  changing,  and  American  genius  is  always  active 
necessary  in  devising  new  machines  and  methods.  If 
in  some  ^]^g  management  goes  to  the  expense  of  intro- 
ducing new  machines  and  new  methods  that 
greatly  increase  the  output  of  workers  without  any  in- 
crease of  effort,  the  rates  should  be  adjusted.  The  em- 
ployees should  be  told  frankly  the  situation,  and  then 
the  majority  will  realize  the  justice  and  fairness  of  a 
reduction,  and  will  not  oppose  it.  Proper  precautions 
should  be  taken  in  fixing  rates,  and  then  rate  cutting 
would  be  necessary  only  in  exceptional  cases,  and  should 
take  place  only  with  the  assistance  of  employees. 

A  method  of  encouraging  employees  to  increase  efforts 
and  become  more  interested  in  a  business  is  profit  shar- 
ing.    This  is  giving  employees,  in  addition  to 
sharing  ^^^^^  regular  wages,  a  certain  per  cent  of  the 

net  profits  of  a  business.  Strictly  speaking,  it  is 
not  a  method  of  wage  payment,  but  many  look  upon  it 
as  such,  and  on  that  account,  it  is  considered  with  the 
other  methods.  The  practice  is  more  prevalent  in  Eng- 
land than  in  the  United  States,  but  we  have  in  this 
country  many  strong  advocates  of  profit  sharing  as 
the  best  method  for  obtaining  the  cooperation  of  the 
working  force.  It  is  slowly  increasing  in  favor,  and 
several  employers  of  large  forces  give  it  considerable 
credit  in  increasing  the  efficiency  of  their  working  forces. 
Method  of  Profits  are  divided  between  employees  and 
distributing  employers,  and  at  first  sight,  this  seems  equi- 
profits.  table   and   just.      The  percentage  of  profits 

given  to  employees  varies  with  individual  cases,  and  may 


WAGES  335 

be  divided  among  all  employees,  or  restricted  to  those  of 
a  certain  time  of  service.  The  distribution  may  be 
equal,  or  based  to  a  certain  degree  on  salary  received, 
or  on  years  of  service. 

The  distribution  of  profits  to  workers  depends  upon 
the  existence  of  profits.     Profits  depend  upon  many  ele- 
ments, of   which  labor  is  only  one,  and    the  speculation 
labor  of  a  single  individual  a  very  small  frac-  as  to  exist- 
tion.     Errors  of   judgment  in   buying  or  in  ^^^^  °^ 
selling,    excessive   losses   through   bad   debts,  ^^° 
unforeseen   happenings   which    affect    the   markets    for 
goods  produced  or  sold,  bad  management,  losses  through 
accidents  or  fires,  are  all  costly,  and  may  be  sufficient 
to  wipe  out  profits.     Men  who  have  worked  faithfully 
throughout  the  year  expecting  at  the  end  a  good-sized 
bonus  may  be  sorely  disappointed  to  find  no  profits. 
There  are  so  many  elements  affecting  profits  other  than 
labor,  that  it  is  always  more  or  less  of  a  speculation  as 
to  the  existence  of  profits  at  the  end  of  a  year,  and  if 
they  will  be  sufficient  to  make  the  amount  distributed 
attractive  to  individual  workers. 

On  the  other  hand,  the  greater  part  of  profits  is  usually 
due  to  causes  over  which  labor  has  no  control.  Im- 
proved methods  of  production,  good  manage-  causes  for 
ment,  capable  executive  heads  and  superin-  profits  other 
tendents,  shrewdness  in  buying  so  as  to  take  t^^n  labor, 
advantage  of  favorable  markets,  and  in  selling  to  best 
advantage,  carefulness  in  granting  credit,  good  fortune 
in  not  having  losses  from  fires  or  accidents,  all  assist  in 
adding  to  profits.  There  are  so  many  elements  con- 
tributing to  profits  that  it  cannot  be  said  that  they  are 
due  to  labor  alone,  and  it  is  difficult  to  say  what  part 
is  due  to  labor.  The  distribution  of  profits  to  workers, 
or  what  is  known  as  profit  sharing,  should  be  looked 
upon  as  a  gratuity  and  not  a  system  of  wage  payment. 


336  ECONOMICS  OF  EFFICIENCY 

The  degree  to  which  the  gratuity  affects  greater  interest 
and  cooperation  on  the  part  of  a  working  force,  is  im- 
possible to  say. 

There  are  many  disadvantages  in  profit  sharing,  and 
these  possess  such  force  that  the  incentive  is  not  suffi- 
Disadvan-  ciently  great  to  induce  workers  to  put  forth 
tagesinprof-  increased  effort.  The  bonuses  are  more  or  less 
It  sharing.  q£  ^  speculation,  and  come  only  after  long 
intervals,  usually  a  year.  The  distribution  is  not  ac- 
cording to  efficiency,  but  usually  according  to  classes. 
Share  does  ^^^  efficient  and  the  inefficient  in  a  class  being 
not  depend  rewarded  alike,  and  by  the  same  sum.  A 
on  effi-  worker  will  not  be  Kkely  to  increase  his  ef- 

ciency.  forts  to  increase  output  when  his  share  will 

not  be  any  more  than  that  of  the  one  who  idles  away  his 
time.  The  share  given  to  a  worker  does  not  depend 
upon  his  efficiency,  but  simply  on  the  fact  that  he  is  a 
member  of  a  class  coming  within  the  line  of  distribution. 

The  remoteness  and  the  probability  of  a  re- 
S^rewarT^^  ward  are  not  sufficient  inducements  to  make 

the  average  worker  take  greater  interest  in  his 
work  or  increase  his  efforts  to  increase  his  output.  To 
a  certain  degree  profit  sharing  penalizes  the  efficient 
worker  by  making  distribution  alike  to  good  and  poor 
workers.  Easy  work  is  more  attractive  than  hard  with 
a  possible  reward  to  be  shared  with  others  many  months 
No  way  to  ^^  ^^^  future.  Again,  there  is  no  way  on  the 
know  extent  part  of  workers  to  know  the  extent  of  profits, 
of  profits.  g^j^j  whether  or  not,  the  promise  of  the  em- 
ployer is  carried  out.  Accounts  are  not  audited,  and 
the  word  of  the  employer  must  be  taken.  Frequently 
dissatisfaction  arises,  due  to  the  fact  that  employees 
think  that  a  correct  accounting  has  not  been  made. 
Profit  sharing  is  so  remote  in  its  reward,  so  impartial 
to  efficiency  and  extra  efforts,  and  based  upon  so  many 


WAGES  337 

contingencies,  that  it  gives  Kttle  incentive  to  efficiency 
and  extra  efforts.  It  requires  a  more  immediate  and 
direct  reward  to  arouse  men  to  action. 

The  contract  plan  is  a  system  of  wage  payment  oc- 
casionally found  in  the  United  States  and  Great  Britain. 
A  certain  rate  is  agreed  upon  for  a  job  between 
the  management  and  a  contractor,  who  uses  system, 
the  shop  equipment  but  hires  his  own  labor. 
The  difference  between  what  he  gets  for  his  job   and 
what  it  costs  to  get  it  done  is  his  profit.     The  contract 
system  is  frequently  used  in  the  case  of  unskilled  work 
for  which  laborers  of  a  low  t3^e,  usually  foreigners,  are 
employed  and  invariably  results  in  slave-driving  habits 
which   will   not   be    tolerated   by   American 
laborers.     There   is   no   knowledge   of   what  operates, 
the  job  will  cost,  and  the  price  is  fixed  by 
higgling  between  the  contractor  and  the  management. 
Each  uses  his  skill,  the  one  to  get  as  high  a  price  as 
possible,  and  the  other,  as  low  as  possible.     With  the 
average  worker,  the  ordinary  contract  system  will  con- 
tinue to  lose  favor,  but  there  are  various  modified  forms 
of  it  which  may  continue  in  practice  and  win  favor  for 
some  time. 

QUESTIONS 

1.  What  is  the  relation  between  wages  and  efficiency? 

2.  What  are  the  requisites  for  a  proper  wage  system? 

3.  What  are  the  various  systems  of  pay? 

4.  What  are  the  advantages  and  disadvantages  of  time  wages  ? 

5.  In  what  way  do  time  wages  foster  soldiering? 

6.  What  are  piece  rates  and  when  should  they  be  used  ? 

7.  Account  for  the  opposition,  of  unions  to  piece  rates. 

8.  What  precautions  should  be  taken  in  the  installation  of  a 
piece-rate  system  ? 

9.  In  what  way  do  piece  rates  foster  soldiering  ? 

10.  Give  the  difference  between  the  old  system  of  piece-rate 
fixing  and  the  new. 


338  ECONOMICS  OF  EFFICIENCY 

11.  How  may  a  just  piece  rate  be  established? 

12.  What  are  the  duties  of  an  employer  in  establishing  proper 
piece  rates  ? 

13.  What  precautions  should  be  taken  to  protect  the  health  of 
workers  under  piece-rate  systems  ? 

14.  What    is   the   profit-sharing   system?     Mention    different 
methods  of  profit  sharing. 

15.  Give  the  advantages  and  disadvantages  of  profit  sharing. 


REFERENCES 

Books 

G.L.Bolen,  "Getting  a  Living,"  Ch.  V;  F.  T.  Carlton,  "The 
History  and  Problems  of  Organized  Labor,"  Ch.  VIII;  S.  Dean, 
"Shop  and  Foundry  Management,"  Article  IV;  L.  R.  Dicksee, 
"Business  Organization,"  Chs.  VI,  VII,  XV ;  H.L.  Gantt,  "Work, 
Wages,  and  Profits,"  Chs.  III-V ;  N.  P.  Oilman,  "Profit  Sharing"  ; 
C.  B.  Going,  "Principles  of  Industrial  Engineering,"  Ch.  VII; 
S.  Kirschbaum,  "Business  Organization  and  Administration," 
Ch.  XII;  F.  R.  Mason,  "Business  Principles  and  Organization," 
Chs.  XI,  XV;  J.  L.  Nicholson,  "Nicholson  on  Factory  Organiza- 
tion and  Costs,"  Ch.  I ;  C.  C.  Parsons,  "  Business  Administration," 
Ch.  XV;  The  Library  of  Business  Practice,  Vol.  II,  pp.  1 21-156; 
W.  H.  Tolman,  "Social  Engineering,"  Ch.  VII;  F.  E.  Webner, 
"Factory  Costs,"  Ch.  IX. 

Articles 

W.  J.  Ashley,  "Profit  Sharing,"  Quarterly  Review,  Vol.  219, 
pp.  509-530;  B.  Buxbaum,  "Wage  Systems  in  Germany,"  Ameri- 
can Machinist,  Vol.  35,  pp.  827-829;  D.  Carnegie,  "Systematic 
Piece-Work  Pricing,"  Gassier,  Vol.  18,  pp.  74-76;  J.  E.  Chace, 
"Setting  Piece-rates  with  Science,"  Factory,  Vol.  7,  p.  16;  R. 
Clark,  "Why  Profit-sharing  Schemes  Fail,"  System  (English 
Edition),  Vol.  25,  pp.  231-234;  H.  P.  Clausen,  "Speeding  up  Pro- 
duction for  Establishing  Piece-work  Rates,"  Engineering  Maga- 
zine, Vol.  41,  pp.  63-68;  H.  Diemer,  "The  Fixing  of  Piece-work 
Rates,"  Engineering  Magazine,  Vol.  26,  pp.  169-176;  B.  A. 
Franklin,  "Quality  Piece-work,"  Engineering  Magazine,  Vol.  41, 
pp.  273-278;  B.  A.  Franklin,  "Gang  Piece-work,"  Engineering 
Magazine,  Vol.  41,  pp.  457-460;    J.  B.  C.  Kershaw,  "Co-partner- 


WAGES  339 

ship  and  Profit  Sharing  as  a  Solution  of  the  Wages  Problem," 
Engineering  Magazine,  Vol.  43,  pp.  837-845 ;  H.  F.  J.  Porter, 
"Paying  for  Work  —  Not  for  Time,"  Factory,  Vol.  10,  pp.  231  4- ; 
H.  F.  J.  Porter,  "Making  the  Most  of  Day  Work,"  Factory,  Vol. 
10,  pp.  341  +;  W.  D.  Scott,  "Wages,"  System,  Vol.  18,  pp.  492- 
496;  J.  C.  Smith,  "Theory  of  Equitable  Profit-sharing,"  West- 
minster Review,  Vol.  180,  pp.  492-512  ;  C.  B.  Thompson,  "When 
Higher  Wages  Pay,"  System,  Vol.  22,  pp.  339-348  ;  J.  G.  Thomp- 
son, "Present  Work  and  Present  Wages,"  Quarterly  Journal  of 
Economics,  Vol.  24,  pp.  515-535- 


CHAPTER  XV 

Scientific  Piece-Rate  Systems 

Various  systems  of  pay  have  during  the  last  few 
years  been  devised  to  additionally  reward  men  for  in- 
Haise  creased    efforts    and    greater    output.     The 

premium  earliest  method  is  the  giving  of  premiums  to 
plan  of  wage  j^en  who  perform  their  tasks  in  less  than  a  cer- 
payment.  ^^.^  allotted  time.  There  are  in  practice  many 
ways  for  deciding  and  awarding  premiums,  but  the  one 
which  has  reached  the  greatest  favor  in  the  United 
States  and  Great  Britain  is  the  Halsey  premium  system. 
This  is  named  after  its  originator,  Mr.  F.  A.  Halsey, 
who,  when  he  devised  the  system,  was  employed  by  the 
Rand  Drill  Company  of  Sherbrook,  Quebec,  Canada. 

A  certain  allotted  time  is  allowed  for  the  performance 

of  a  task,  and  is  ascertained  by  a  careful  study  of  the 

records  of  the  performances  of  average  men  in 

derates  ^^^  P^^^*  ^^^  ^^^  P^^^  ^^^^^  regular  time 
wage,  regardless  of  what  their  output  may  be, 
and  if  they  perform  their  tasks  in  time  less  than  that 
allotted  or  standard,  they  receive  a  premium  for  the 
time  saved.  The  premium  depends  upon  doing  the 
task  in  a  shorter  time  than  that  of  the  recorded  per- 
formance of  the  average  man  in  the  past.  Men  usually 
receive  their  pay  in  two  envelopes,  one  containing  the 
regular  time  wage  and  the  other  the  premium  earned 
during  that  time.  It  is  optional  with  the  men  whether 
they  take  the  premium  or  not,  but  it  is  very  rarely 
refused.       Suppose,  for  example,  the  time  for  a  certain 

340 


SCIENTIFIC  PIECE-RATE  SYSTEMS         341 

task  is  ten  hours  and  the  pay  thirty  cents  an  hour.  If 
a  man  performs  the  task  in  eight  hours,  he  saves  two 
hours.  The  full  amount  of  the  value  of  the  time  saved 
is  not  given,  but  a  percentage  varying  from  30  to  50 
per  cent.  The  percentage  varies  in  different  shops 
and  with  different  kinds  of  work.  The  value  of  the 
time  saved  is  divided  with  the  employer,  as  a  reward 
for  the  extra  wear  and  tear  on  the  plant  and  equipment, 
and  extra  waste  resulting  from  more  rapid  work.  With 
the  sharing  of  profit  with  the  employer,  there  is  not 
the  Hkelihood  of  cutting  rates.  If  the  distribution  for 
time  saved  is  on  the  basis  of  50  per  cent,  then  the  worker 
will  receive  for  the  task  8  X  .30,  $2.40,  plus  a  premium 
of  I  of  .60  equals  .30,  or  a  total  of  $2.70  for  eight  hours' 
work,  or  approximately  $3.37  instead  of  $3.00  for  ten 
hours'  work. 

Wherever  possible,  all  work  is  given  a  standard  time 
which  is  printed  on  cards,  as  well  as  the  percentage  given 
for  time  saved.  These  are  either  given  to  the 
workers  or  they  have  access  to  them,  so  payment, 
workers  know  w^hen  they  receive  a  premium 
and  how  much.  Daily  records  are  kept  of  the  units  of 
work  performed  by  each  worker.  Ascertaining  the 
premium  is  a  simple  matter  of  bookkeeping.  The 
timekeeper  finds  that  for  a  week  John  Brown  performs 
ten  units  of  work.  He  looks  at  the  standard  time  card 
and  finds  that  the  standard  time  for  each  unit  is  eight 
hours,  and  the  rate  per  hour  thirty  cents.  John  Brown 
works  ten  hours  a  day  and  during  the  week  performs 
eighty  hours  of  work  in  sixty  hours,  and  accordingly 
saves  twenty  hours.  The  week's  wage  of  $18.00  is 
paid  in  the  regular  weekly  pay  envelope,  and  in  a  sepa- 
rate envelope  is  pla^^ed  the  prem^'^im  earned  during  the 
week,  which  if  the  'xistribution  is  on  the  basis  of  50  per 
cent,  is  I  X  20  X  3c,  or  $3.00. 


342  ECONOMICS   OF  EFFICIENCY 

The  time  allotted  for  a  task  is  not  based  on  scientific 
study,  and  no  attempt  is  made  to  obtain  standard  con- 
ditions or  standard  methods.  A  worker  is 
taining  of  left  to  himself  to  devise  and  to  find  ways  of 
standard  shortening  standard  time.  No  limit  is  placed 
*^°^®'  upon  earnings.     The  management  undertakes 

to  keep  each  worker  suppHed  with  work  during  the  work- 
ing days,  so  that  he  may  not  be  handicapped  by  waiting 
for  new  work.  The  serious  problem  under  the  Halsey 
system  is  fixing  the  standard  time.  If  extreme 
care  is  not  exercised,  the  time  may  be  made  too 
low  and  earnings  are  excessive ;  or  too  high,  and  then  the 
earnings  may  be  such  that  few  earn  premiums,  and  this 
takes  away  the  incentive  for  work.  The  system  with 
a  fair  standard  of  time  encourages  workers  to  put  forth 
their  best  efforts  to  increase  their  output,  and  it  further 
encourages  them  by  making  the  reward  immediate  and 
substantial.  Workers  who  do  not  do  their  best  are  not 
punished,  as  every  one  receives  the  daily  wage.  The 
Halsey  system,  with  care  in  getting  standard  times  so 
that  cuts  are  not  necessary,  is  a  successful  system  of 
paying  labor.  No  change  is  necessary  to  introduce  the 
system,  and  the  premium  if  substantial  induces  workers 
to  put  forth  their  best  efforts.  The  records  kept  will 
show  the  men  below  the  average.  If  they  remain  so  for 
any  length  of  time,  and  are  not  able  to  make  the 
standard  time,  their  places  should  be  taken  by  others. 

A  modification  of  the  Halsey  premium  system  is 
that  credited  to  James  Rowan,  a  member  of  a  prom- 
Rowan  inent  firm  of  engine  builders  of  Glasgow,  Scot- 
premium  land.  The  plan  is  known  as  the  Rowan 
system.  premium  system.  The  standard  time  is 
obtained  as  in  the  Hr^-ey  system  ]-y  a  careful  study  of 
past  records  of  average  men.  The  time  saved  is  con- 
verted into  a  percentage  of  the  standard  time,  and  this 


SCIENTIFIC  PIECE-RATE  SYSTEMS         343 

is  the  percentage  of  the  regular  pay  that  goes  to  the 
worker  as  his  premium.  The  worker  accordingly  re- 
ceives as  a  premium  the  percentage  of  his  regular  pay 
that  the  time  saved  is  of  the  standard  time.  If,  for 
example,  the  standard  time  for  a  unit  of  work  is  ten 
hours  and  the  pay  thirty  cents  an  hour,  and  a  worker 
does  the  work  in  eight  hours,  the  time  saved  is  How  it 
two  hours,  or  20  per  cent  of  the  standard  time,  operates. 
The  premium  is  therefore  20  per  cent  of  8  X  .30,  or  .48. 
It  is  no  more  difficult  to  record  than  the  Halsey  pre- 
mium system.  If  John  Brown  during  a  week  performs 
ten  units  of  work,  and  the  standard  time  for  each  unit 
is  eight  hours,  therefore  during  the  week  of  sixty  working 
hours,  he  does  the  equivalent  of  eighty  standard  hours 
and  saves  twenty  hours.  The  time  saved  is  therefore 
25  per  cent  of  the  standard  time.  If  the  regular  pay  is 
thirty  cents  per  hour,  the  weekly  wage  equals  $18.00 
and   the  premium   $4.50.     A   formula   for  finding   the 

premium  is    — - —   equals  premium,  where  A   equals 

A. 

the  standard  time,  and  B  the  actual  time  consumed. 
From  this  formula  one  may  see  that  under  no  circum- 
stances can  any  worker  more  than  double  his  regular 
daily  wage.  This  system  has  met  with  considerable 
favor  in  England  but  Httle  in  the  United  States. 

As  a  result  of  the  movement  for  scientific  investiga- 
tion of  operations,  three  new  systems  of  pay  have  been 
introduced  and  have  attracted  considerable 
attention.  Perhaps  the  most  favored  is  that  sy^tem.**^"^ 
introduced  by  Mr.  Gantt  and  sometimes 
called  the  Gantt  bonus  system.  This  is  a  combination 
of  time  and  piece  rates.  Mr.  Gantt  places  great  stress 
upon  the  task  and  the  time  required  for  its  perform- 
ance. Best  methods  are  ascertained  for  the  perform- 
ance of  work  and  made  standard.     These  are  taught  to 


344  ECONOMICS   OF  EFFICIENCY 

workers  by  competent  instructors.  The  best  machinery 
and  equipment  are  provided  and  maintained  in  best 
How  stand-  ^^^P^i^,  and  provision  is  made  for  providing 
ard  time  is  workers  with  proper  tools  and  proper  quan- 
ascer-  tities  of  materials.     Working  conditions  and 

^^^  *  environments  most  conducive  to  health  and 

work  are  provided.  Careful  time  studies  and  numerous 
experiments  are  made  to  ascertain  the  proper  time  for 
a  task.  The  time  allotted  takes  into  consideration  the 
conditions  existing  in  a  plant,  necessary  delays,  and  rest 
periods  if  such  are  given.  When  the  workers  are  taught 
standard  methods  for  performing  tasks,  and  the  plant  is 
standardized,  the  men  are  paid  on  the  bonus  plan.  The 
I   tr    ti        ^^^^  methods  and  tools  for  performing  work 

are  carefully  worked  out  and  given  to  workers 
as  instructions.  A  worker  follows  instructions,  and  if  he 
accompHshes  the  task  in  the  time  allotted,  he  gets  time 
wage  and  bonus.  If  he  fails  to  do  so,  he  gets  his  time 
wage,  but  is  supposed  to  report  to  the  superintendent 
that  he  has  failed  to  accomplish  the  task  in  the  allotted 
time.  Inspection  is  made  of  the  instructions,  and  if  they 
are  found  to  be  correct,  the  worker  is  given  further  in- 
struction, and  if  after  several  trials  he  cannot  make  the 
task  in  the  time  set,  he  is  changed  to  another  class  of 
work. 

The  time  taken  by  the  average  worker  is  carefully 
ascertained.     The  average  worker   and   not   the  most 

efficient  is  the  one  who  is  studied,  and  the  one 
workerTs^^^  who  is  considered  in  allotting  the  time.  The 
the  one  discovery  of  the  average  worker  is  not  by 
studied  guesswork,  but  is  ascertained  by  careful  tests 

and  experiments.  Mr.  Gantt  insists  that 
guesswork  in  setting  tasks  should  be  eHminated.  His 
ideal  is  where  "the  best  expert  available  investigates  the 
work,  standardizes  appliances  and  methods,  and  sets  the 


SCIENTIFIC  PIECE-RATE  SYSTEMS        345 

task  that  involves  utilizing  them  to  their  best  efficiency." 
It  stands  to  reason  that  if  accuracy  is  to  be  Elimination 
attained,  the  use  of  the  stop  watch  is  indis-  of  guess- 
pensable.      The   methods    adopted    by    Mr.  '^°'^^' 
Gantt  ehminate  guesswork,  the  great  cause  of  mischief 
and  trouble  between  employer  and  employee. 

Mr.  Gantt  reahzes  that  precautions  should  be  taken 
not  to  make  the  task  too  difficult  or  too  easy.  It  should 
be  possible  with  conditions,  machines,  and  jasknot 
tools  furnished,  and  by  the  average  trained  too  difficult 
man  in  the  time  allotted.  It  is  necessary  to  nor  too 
emphasize  that  it  is  the  average  trained  man,  ^^^^' 
because  a  man  untrained  may  not  accomplish  the  task 
in  the  time  set,  but  the  average  trained  man  should. 
If  the  task  is  too  difficult  and  only  possible  for  the 
most  efficient  men  to  attain,  it  will  not  be  conducive  to 
increased  efforts  and  will  cause  discontent.  This  de- 
feats the  purpose  of  the  system.  Again,  if  the  task  is 
too  easy,  earnings  would  be  too  large.  The  chief  prob- 
lem is  fixing  the  task,  and  with  careful  study,  experi- 
menting, and  time  and  motion  studies,  it  is  accurately 
and  scientifically  determined.  After  the  task  has  been 
fixed  and  the  time  ascertained,  the  next  important  prob- 
lem is  fixing  the  rate.  Mr.  Gantt  says  that  the  task  and 
the  rate  should  be  such  as  would  make  it  possible  for  a 
competent  workman  to  .  earn  from  20  to  100  per  cent 
more  than  day  pay.  There  should  be  sufficient  induce- 
ment for  extra  effort  in  order  to  obtain  the  best  results. 

Rate  cutting,  the  cause  of  so  much  trouble  in  the 
ordinary  piece-rate   system,  is  eliminated   because  the 
Gantt  system  of  estabhshing  task  and  rate  is  ^^  ^^^ 
the  result  of  careful  study  and  scientific  in-  mum  limit 
vestigation.     There    is    no    maximum    limit  ^5°°; 
placed  upon  the  efficiency  of  any  worker,  and  ®^^^^^- 
his  reward  is  increased  with  his  efficiency.     There  is 


346  ECONOMICS  OF  EFFICIENCY 

no   object  in   soldiering   to  prevent  rate  cutting,  and 
soldiering  is  almost  entirely  prevented.     If  a 
eliminated     ^^^  ^^^^  ^^^  reach  the  standard  after  instruc- 
tion, his  instructor  has  to  find  out  the  cause, 
and  if  it  is  due  to  laziness  or  unwillingness  to  put  forth 
effort,  the  man  is  changed  to  other  work  or  discharged. 
If  the  fault  is  due  to  lack  of  instruction,  it  is  the  work 
of   the  instructor  to   take  special  pains  to   teach  the 
worker  patiently  in  the  best  methods  until  they  are 
mastered.     Where  it  is  impossible  for  a  man  to  learn 
best  methods,  he  is  changed  to  other  work  or  discharged. 
Employers   should   remember   that   workers   can   do 
only  a  certain  amount  of  work  in  a  day  without  injurious 
results,  no  matter  what  the  reward  is.     In  fix- 
Health  pre-    •       ^j^g  j.^^g    ^Yie  employer  should  take  this 

cautions.  ,o  j  r-     j  .ii.i 

mto  account,  and  fix  a  rate  where  the  desired 
inducement  will  be  present  without  a  worker  working 
to  the  point  of  injurious  fatigue.  A  worker  should  not 
be  allowed  to  work  at  a  pace  that  will  impair  health, 
because  whatever  impairs  health,  impairs  efficiency 
and  is  a  dollars-and-cents  proposition  to  both  employer 
and  employee.  An  important  problem  is  not  to  get  a 
large  output  at  the  expense  of  health,  but  to  get  the 
largest  possible  output  with  the  energy  expended  that 
will  not  impair  health,  and  to  reward  the  laborer  as 
liberally  as  possible  for  his  efforts.  Any  management 
which  allows  workers  to  become  impaired  in  health  will 
soon  find  itself  seriously  handicapped  by  an  inefficient 
working  force.  The  question  is  what  amount  of  work 
can  the  average  laborer  perform  without  fatigue  or  im- 
pairing his  health. 

Mr.  Gantt  does  not  advocate  urging  workers  to  the 
point  of  exhaustion,  or  to  the  point  of  injurious  results, 
so  as  to  undermine  their  health  and  devitalize  them. 
This  fallacious  charge  has  so  often  been  made.     He  real- 


SCIENTIFIC  PIECE-RATE  SYSTEMS        347 

izes  as  well  as  any  student  of  efficiency,  that  efficiency 
can  only  be  obtained  and  maintained  by  a  healthy  work- 
ing force,  and  whatever  undermines  health  Gantt  sys- 
and    causes   dissatisfaction   undermines    effi-  tem  and 
ciency.     The  increase  in  output  and  in  wages  ^®^^*^- 
claimed  by  Mr.  Gantt  for  his  system  comes  not  from 
the  expenditure  of  an  extra  amount  of  energy,  sapping 
vitahty  and  strength,   but  from  other  causes,   chiefly 
those  of  converting  a  great  amount  of  the  wasted  energy 
under  the  old  methods  into  productive  results,  through 
providing  best  possible  tools,  machinery,  methods,  and 
working  conditions. 

The  worker  who  performs  the  task  in  the  allotted 
time  is  given  a  bonus.  At  first,  the  bonus  was  fixed, 
and  there  was  no  inducement  for  a  worker  to  ^^^  ^  ^^^ 
do  more  than  just  sufficient  to  earn  the  bonus. 
This  was  later  changed  to  paying  the  worker  the  bonus 
allowed  for  doing  the  work  in  the  allotted  time,  plus 
an  additional  bonus  equal  to  the  percentage  of  the  time 
saved.  This  gives  an  inducement  for  further  effort,  and 
is  more  satisfactory. 

Workers  who  perform  tasks  in  the  allotted  time  are 
encouraged  to  make  suggestions  for  better  methods  of 
performance.     If  on  careful  experimentation  _ 

j^^-  4.'  ^1,4-^1,      Suggestions. 

and   testmg,    a   suggestion   proves   that   the 
average  trained  worker  may  perform  the  work  in  less 
than  the  standard  time,  the  suggestion  is  adopted,  the 
standard  is  changed,  and  the  workers  are  instructed  to 
do  the  work  under  the  new  change.     The  worker  mak- 
ing the  suggestion  is  rewarded.     Mr.  Gantt 
further  rewards  foremen  for  the  men  under  forrmen.^' 
them  making  bonuses.     A  bonus  is  given  to 
the  foreman  for  each  man  under  him  who  performs  his 
work  in  standard  time,  and  a  further  bonus  if  all  make 
the  bonus.     This  gives  an  inducement  for  the  foreman 


348  ECONOMICS  OF  EFFICIENCY 

to  take  special  care  to  see  if  any  men  do  not  receive  the 
bonus,  and  to  devote  his  energies  to  bring  them  up  to 
the  standard,  and  earn  the  extra  bonus. 

The  great  essential  for  a  satisfactory  and  efhcient 
working  of  the  Gantt  system  is  the  support  and  the 
cooperation  of  the  working  force.  With  jus- 
tain  the  CO-  tice  and  fairness  on  the  part  of  the  employer 
operation  in  fixing  the  task  and  the  remuneration  for 
of  the  ^Yie  average  trained  worker,  there  is  every- 

thing to  gain  and  nothing  to  lose  on  the  part 
of  the  working  force  with  the  introduction  of  this  sys- 
tem. The  employer  should  be  open,  frank,  and  just 
with  his  employees.  He  should  explain  in  detail  the 
working  of  the  system,  and  show  that  its  introduction 
will  increase  earnings,  reward  according  to  efficiency, 
and  that  overwork  and  overfatigue  will  not  be  neces- 
sary to  earn  a  fair  wage.  With  careful  explanation  and 
proper  understanding  of  a  proposed  change,  the  average 
employee  will  be  ready  to  follow  the  instructions  neces- 
sary to  carry  out  the  change.  This  system  may  be  used 
to  exploit  as  well  as  other  systems.  The  employer 
should  expect  to  be  just  and  to  give  a  fair  and  just  re- 
ward for  labor.  Employees,  on  the  other  hand,  should 
be  satisfied  with  a  just  reward. 

Employees  should  assist  and  be  consulted  in  ascer- 
taining task  and  time,  and  should  Hkewise  be  consulted 
Share  of  ^^  fixing  remuneration.  They  should  be  im- 
empioyees  pressed  with  the  fact  that  fairness  and  justice 
in  fixing  ^^e  what  the  employer  is  seeking,  and  that  he 
is  wilKng  that  his  employees  should  give  their 
assistance  in  ascertaining  the  proper  task  and  its  just 
remuneration.  The  success  of  the  Gantt  system  de- 
pends upon  fixing  the  task  and  its  remuneration.  The 
working  force  should  be  satisfied  or  they  will  not  coop- 
erate and  the  purpose  of  the  system  will  not  be  obtained. 


SCIENTIFIC  PIECE-RATE  SYSTEMS        349 

The  cooperation  of  the  working  force  in  fixing  task  and 
remuneration  works  for  harmony  and  the  success  of 
the  system. 

A  second  method  of  remuneration  demanding  scien- 
tific investigation  of  conditions  and  methods  is  the  sys- 
tem devised  by  Mr.  F.  W.  Taylor,  heralded  as  Differential 
the  father  of  the  widespread  scientific  man-  piece-rate 
agement  movement.     Mr.  Taylor's  system  is  ^y^*®™- 
known  as  the  differential  piece-rate  system.     As  under 
the   Gantt  system,   every  task  is  studied  by  experts, 
carefully  analyzed  into  its  simplest  parts,  and  ^^  uigites 
the  best  possible  methods  ascertained  for  its 
performance.     Careful   time   studies   are  made   of   the 
performance  of  the  task,  and  the  necessary  time  for  its 
performance   obtained.     The   time   allotted   takes  into 
consideration  the  conditions  existing  in  a  plant,  neces- 
sary delays,  and  rest  periods,  if  such  are  needed.     Stand- 
ardized conditions,  best  possible  equipment,  machinery 
and  tools  always  in  the  best  repair,  the  working  conditions 
most  conducive  to  health  and  work  are  requisites  for  the 
system.    After  the  best  methods  are  ascertained 
and  made  standard,  the  workers  are  instructed  carS!^*^°^ 
by  competent  instructors  to  perform  the  tasks 
in  the  standard  way.     Instruction  cards  are  made  out 
for  each  task,  giving  standard  methods  for  performance, 
tools  to  be  used,   and  directions  to  be  followed.     In 
every  case,  the  worker  follows  closely  the  instructions 
laid  down. 

The  system  punishes  and  rewards.     If  a  worker  does 
not  perform  his  task  in  the  given  standard  time,  his 
rate  of  pay  is  lower  than  if  he  does.     It  offers 
for  the  same  work,  a  higher  piece  rate  for  entkirate" 
standard  time  and  perfect  work,  and  a  lower 
rate  for  slower  time.     Mr.  Taylor  uses  two  different  rates 
for  the  same  task,  but  there  is  nothing  to  prevent  the 


3 so  ECONOMICS  OF  EFFICIENCY 

use  of  more  than  two.  The  differential  scheme  of 
Mr.  Taylor  allows  a  lower  rate  for  not  finishing  on 
schedule  time,  but  no  increase  in  rate  if  finished  in  less 
than  standard  time.  There  is  an  inducement  to  reach 
standard  time  but  none  to  produce  in  less  than  standard 
'^^at  is  time.  Mr.  Taylor  says  that  the  task  should  be 
a  first-class  so  difficult  that  only  first-class  men  can  per- 
man?  form  it  in  standard  time.     If  the  task  is  so 

difficult  that  the  average  man  in  a  class  cannot  perform 
it  in  the  allotted  time,  the  incentive  to  increased  effi- 
Precaution  cicncy  is  restricted  to  a  small  number^  and 
infixing  the  system  produces  friction  rather  than  an 
task.  increase  in  efficiency.     It  should  be  possible 

for  the  average  man  to  perform  the  task  in  the  allotted 
time  and  get  the  higher  rate.  Men  below  a  first- 
class  man  should  be,  according  to  Mr.  Taylor,  given 
additional  instruction  so  that  it  will  bring  them  up  to 
the  standard.  If  after  careful  instruction,  this  is  im- 
possible, they  should  be  given  other  work.  The  pur- 
pose of  Mr.  Taylor's  system  may  be  easily  defeated  by 
making  the  task  too  difficult.  This  has  been  the  cause 
of  many  failures  of  the  system. 

Mr.  Taylor's  differential  rate  works  as  follows :  If 
after  careful  investigation  it  is  found  that  two  units 
of  a  certain  kind  of  work  can  be  done  in  an 
^^operatfon  ^^^^  ^Y  ^  first-class  man  working  under  stand- 
ard conditions,  with  best  equipment  and  ap- 
pHances,  and  trained  in  best  methods,  two  pieces  an 
hour  are  made  the  standard.  If  a  man  makes  two 
pieces  or  more,  he  receives  fifteen  cents  a  piece,  but  if 
he  does  not,  twelve  cents.  If  he  finishes  four  pieces 
in  an  hour,  his  pay  is  sixty  cents,  but  the  task  is  so 
difficult  that  such  an  increase  is  phenomenal  and  rarely 
occurs.  If  a  man  makes  one  and  a  half  pieces  an 
hour,  his  pay   is   only   eighteen   cents.     Mr.  Taylor's 


SCIENTIFIC  PIECE-RATE  SYSTEMS        351 

system  is  undoubtedly  the  most  difficult  to  introduce 
and  to  maintain.  It  sounds  well  from  a  theoretical 
point  of  view,  but  is  not  nearly  as  practical  as  Mr. 
Gantt's  or  Mr.  Halsey's.  Mr.  Gantt  furnishes  a  regular 
time  rate  and  Mr.  Taylor  does  not.  Mr.  Gantt  rewards 
all  who  make  the  task  in  the  allotted  time  and  does  not 
punish  those  who  do  not  —  except  if  they  cannot  make  it 
after  further  instructions,  they  are  transferred  or  dis- 
missed. Mr.  Taylor  punishes  as  well  as  rewards.  If 
care  is  not  taken,  the  punishment  may  be  so  severe  that 
the  antagonism  which  it  arouses  causes  its  failure. 
Mr.  Taylor  strongly  emphasizes  the  fact  that  the  task 
should  be  so  difficult,  that  only  first-class  men  can  do 
it  in  standard  time,  and  if  care  is  not  taken,  the  incentive 
may  not  be  great  enough  to  induce  the  average  man  to 
cooperate  in  increasing  output.  The  Taylor  system  is 
especially  adapted  where  the  same  kind  of  task  is  re- 
peated day  after  day.  Even  here,  if  the  task  is  made 
too  difficult,  so  that  the  proper  encouragement  is  not 
given,  it  is  likely  to  be  an  absolute  failure.  The  prin- 
ciple should  be  followed  that  the  rate  should 
be  such  as  will  allow  an  increase  in  wages  of  Proper  en- 
from  30  to  60  per  cent  to  all  who  make  stand-  ^ent  should 
ard  time,  and  this  should  be  possible  to  the  be  given, 
average  trained  man  in  a  plant.  If  these  pre- 
cautions are  not  taken,  the  chances  of  success  are  slight. 
To  the  impartial  observer,  it  appears  that  the  Gantt 
system  will  give  all  the  desired  results  of  the  Taylor, 
will  not  meet  with  the  same  opposition,  and  will  give 
all  necessary  incentives  for  increased  efforts.  The 
Gantt  and  Halsey  systems  have  met  with  greater  favor 
with  employees  and  will  continue  to  increase  in  favor. 

The  task  idea  with  the  bonus  omitted  has  been  adapted 
with  success  for  day  work.  The  amount  of  work  which 
can  be  performed  by  the  average  man  under  existing  con- 


352  ECONOMICS  OF  EFFICIENCY 

ditions  is  set  as  the  task,  and  as  soon  as  the  task  is 
completed  the  worker  is  allowed  to  go.  If  the  task  is  not 
Task  idea  finished  at  quitting  time,  those  who  have  not 
in  day  done  SO  are  not  allowed  to  go  until  it  is.     The 

^°^^-  boss  or   superintendent   is   held    responsible 

for  quahty,  and  frequent  inspection  is  made  to  see  that 
uniform  quahty  of  work  is  obtained. 

The  last  of  the  wage  systems  to  be  considered  is  the 
Emerson  efficiency  system.  It  was  devised  by  Mr. 
Emerson  Emerson,  the  well-known  engineer  and  effi- 
efficiency  ciency  expert.  Machines,  tools,  and  factory 
system.  conditions  are  standardized  and  put  in  the 
best  possible  condition.  As  with  the  Gantt  and  Taylor 
systems,  standard  times  and  motions  for  different  tasks 
.  .  are    determined    by    scientific    investigation, 

eqmsi  e  .  ^j^pi^yggs  receive  instruction  cards,  giving 
instructions  as  to  best  methods,  tools,  and  the  time 
the  work  should  take.  The  standard  time  is  ascertained 
and  is  the  time  which  the  average  trained  man  takes  to 
perform  the  task.  This  point  should  be  emphasized, 
because  if  it  were  the  best  man  of  his  class,  few  would 
reach  standard  time,  and  the  motive  for  extra  effort 

would  be  lost.  When  a  man  does  the  work  in 
Scheme         standard  time,  his  bonus  is  20  per  cent,  but 

the  bonus  starts  when  the  work  is  performed 
in  two  thirds  standard  time.  From  two  thirds  standard 
to  standard  time,  there  is  a  rising  scale  until  men  be- 
come 100  per  cent  efficient,  or  do  the  work  in  standard 
time,  when  the  bonus  becomes  20  per  cent.  If  a  worker 
does  the  work  in  still  less  than  standard  time,  he  gets 
the  bonus  of  20  per  cent  plus  the  value  of  the  time 
saved  at  the  standard  rate. 

The  practice  is  not  to  compute  the  bonus  unit  by  unit 
of  work,  but  on  the  sum  of  the  work  done  during  a  bonus 
period,  usually  a  month.     Daily  records  are  kept  of  each 


SCIENTIFIC  PIECE-RATE  SYSTEMS        353 

man's  performance.     Each  job  or  unit  of  work  has  stand- 
ard time.     The  sum  of  the  standard  hours'  work  is  found 
by  adding  the  standard  times  for  all  jobs  or 
units  of  work  performed.     The  sum  of  the  operation! 
actual  hours  of  work  is  known.     By  the  com- 
parison of  the  actual  time  with  the  standard,  the  effi- 
ciency percentage  is  ascertained.     Suppose  a  man  works 
twenty-six  days  of  eight  hours  each,  or  two  hundred 
and  eight  hours  in  a  month,  at  a  wage  of  forty  cents  per 
hour.     The  time  wage  for  the  month  is  $83.20.     By 
adding  the  standard  times  of  the  units  of  work,  it  is 
found  that  this  worker  performs  one  hundred  and  eighty 
hours  of  standard  work.     His  efficiency  is  ^ff  of  100, 
or  86.5  per  cent.     There  is  a  prepared  table  of  percent- 
ages for  bonuses,  from  performances  in  66f  per  cent  of 
standard  time  to  100  per  cent.     By  looking  over  the 
bonus  table,  this  percentage  gives  a  bonus  of  7  per  cent. 
Therefore  the  bonus  is  7  per  cent  of  $83.20,  or  $5.82.     If 
work  is  found  defective,  has  to  be  done  over  and  the 
fault  lies  with  the  worker,   standard  time  is  counted 
but  once,  and  the  efficiency  of  the  man  as  well  as  that 
of    the    foreman    diminishes.     Foremen    and  Foremen 
bosses    also    receive    bonuses.     The    average  receive 
efficiency  of  his  men  gives  the  efficiency  per  bonuses, 
cent  of  the  boss.     By  comparison  with   the   table  of 
bonuses,  the  amount  of  the  bonus  is  easily  ascertained. 

The  Emerson  system  is  used  for  ordinary  piece  work 
and  for  job  work.     Where  the  work  consists  in  turning 
out  like  pieces  of  goods,  it  is  simpler  than  in 
job  work.     Standard  time  is  ascertained,  and  introduce  a 
one  set  of  instructions  is  given  to  each  man,  cut  in 
and  he  is  to  follow  instructions.     Workers  are  l^f^^^ 
instructed  in  best  methods  until  they  form 
habits  of  work.     Sometimes  inducements  are  given  to 
workers  who  turn  out  100  per  cent  efficient  work  to 


354  ECONOMICS   OF  EFFICIENCY 

make  suggestions  for  improvements.  These  are  studied 
by  experts  in  charge  of  standard  time,  and  if  a  sugges- 
tion is  accepted,  a  reward  is  given.  If  by  new  methods, 
devices,  or  machinery,  standard  time  is  reduced,  before 
it  is  done,  the  workers  are  consulted  and  shown  that  by 
instruction  in  the  new  methods  they  are  able  to  perform 
the  task  with  the  same  effort  and  turn  out  the  same 
amount  of  work  as  before,  but  in  shorter  time.  Allow- 
ance is  made  for  instruction,  and  if  properly  explained, 
and  with  fairness  and  justice  on  the  part  of  the  em- 
ployer, the  average  worker  will  not  object  to  a  cut 
in  standard  time  when  it  is  shown  that  he  is  not  the 
loser.  New  instructions  are  given,  these  are  followed 
in  place  of  the  old,  and  workers  are  carefully  instructed 
in  their  use.  The  efficiency  and  bonus  percentages  do 
not  change. 

In  the  case  of  job  work,  each  job  is  carefully  analyzed 
and  planned  before  it  is  given  to  the  workers.  The 
How  it  experts  in  charge  decide  upon  best  methods, 

works  with  machines,  and  tools  to  use,  and  these  as  well  as 
job  work.  routeing  are  given  on  instruction  cards.  The 
standard  times  for  the  jobs  are  found  by  experts  and 
given  to  the  workers.  The  management  insists  that 
instructions  are  followed  in  all  cases,  and  it  remains  for 
the  management  to  keep  the  plant  always  equipped 
with  standard  machines,  tools,  and  equipment. 

As  in  previous  cases,  the  quantity  of  output  should 
not  interfere  with,  or  impair  the  health  of  the  worker. 
Prere  ui-  '^^^  worker  should  be  considered  in  fixing 
sites  in  the  standard  time,  and  it  should  not  be  made 

operating  ^q^  the  most  efficient  man  in  a  class,  but  for 
system.  ^-^^  average  efficient  trained  man.  If  too  high, 
the  purpose  of  the  system  is  lost,  and  antagonism  in 
place  of  cooperation  is  obtained.  With  proper  fixing 
of  standard  time,  a  Kberal  bonus,  and  the  management 


SCIENTIFIC  PIECE-RATE  SYSTEMS        355 

fulfilling  its  part  in  doing  everything  to  assist  the  worker 
in  increasing  output,  the  system  should  prove  satisfactory 
with  ordinary  piece  or  job  work. 

With  all  wage  systems,  where  increased  pay  follows 
increased  efforts,  extreme  precaution  should  be  taken 
by  the  employer  to  see  that  quality  is  not  im- 
paired.  Provision  should  be  made  in  every  and^quriity. 
case  for  proper  inspection,  and  it  should  not  be 
left  to  the  workers  themselves.  Quality  is  an  absolute 
necessity,  and  no  system  of  wages  should  be  allowed  to 
interfere  with  turning  out  a  product  of  the  highest  quahty 
and  grade. 

The  wage  problem  concerns  two  parties,  the  employer 
and  the  employee.     EfSciency  demands  the  harmonious 
cooperation  of  both  for  the  success  of  the  importance 
business   enterprise.     One   requisite   for   this  of  a  satis- 
cooperation   is    the   satisfactory    solution   of  factory 
the  wage  problem.     This  demands  more  than  ^^^^' 
the  paying  of  wages  or  giving  a  share  in  the  profits. 
The  question  is  not  so  much  the  amount  paid,  but 
whether  or  not  the  wage  paid  is  a  fair  and  just  one. 
Efficiency  is  impossible  without  satisfaction  with  wages 
paid.     The  determination  of  the  method  of  payment 
and  of  the  amount  paid  demands  deliberation,   tact, 
and  Hberahty  on  the  part  of  the  employers,  and  judg- 
ment and  reasonableness  on  the  part  of  employees. 

Many  plants  have  several  systems  of  payment.     The 
character  of  the  work  and  of  the  employees  should  be 
specially    studied.     A    system    of    payment  ^.^^  ^ 
should  be  adopted  which  will  give  the  greatest  ^age  sys- 
satisfaction   and   bring   about   the   heartiest  tem  de- 
cooperation  on  the  part  of  the  working  force,  conditions" 
In  one  factory,  one  kind  of  payment  may  be 
best,  and  in  another,  another.     It  remains  for  the  man- 
agement to  make  a  special  study  of  conditions  and  adopt 


3S6  ECONOMICS  OF  EFFICIENCY 

that  which  will  be  just,  and  give  satisfaction.  The 
successful  solution  of  the  wage  problem  is  so  important 
in  efficiency  that  an  employer  cannot  afford  to  experi- 
ment, and  should  be  cautious  in  determining  the  system 
of  wage  payment,  the  task,  the  time,  and  the  remunera- 
tion, each  of  which  should  be  based  on  knowledge  and 
not  on  guesswork.  The  day  of  guesswork  is  past  and 
that  of  knowledge  is  at  hand.  Every  employer  should 
learn  the  importance  of  knowledge  and  base  the  solution 
of  his  wage  problem  upon  it. 

QUESTIONS 

1.  What  is  the  Halsey  premium  plan  of  wage  payment  ?     Give 
advantages  and  disadvantages. 

2.  What  is  the  Rowan  system?     How  does  it  operate? 

3.  Compare  the  Halsey  scheme  with  the  Rowan  plan. 

4.  What  is  the  Gantt  bonus  system  ?     How  does  it  operate  ? 

5.  What  precautions  should  be  taken  in  the  introduction  of  the 
Gantt  bonus  system  ? 

6.  What  are  the  advantages  and  disadvantages  of   the  Gantt 
system  ? 

7.  How  is  the  bonus  given  to  foremen  ? 

8.  What  part  should  employees  take  in  fixing  task,  time,  and 
rate? 

9.  What   is   the   differential   piece-rate   system?       Give    its 
characteristics. 

10.  Compare  the  bonus  system  with  the  differential. 

11.  What  are  the  advantages  and  disadvantages  of  the  differ- 
ential system  ? 

12.  What  precautions  should  be  taken  in  the  installation  of  the 
differential  system  in  the  treatment  of  labor? 

13.  Show  how  the  task  idea  may  be  applied  to  day  work. 

14.  What  is  the  Emerson  efficiency  system  ? 

15.  Compare  the  Emerson  system  with  that  of  Taylor  and  that 
of  Gantt. 


SCIENTIFIC  PIECE-RATE  SYSTEMS        357 


REFERENCES 

Books 

S.  H.  Bunnell,  "Cost  Keeping  for  Manufacturing  Plants," 
Ch.  VIII;  C.  U.  Carpenter,  "Profit-Making  in  Shop  and  Factory 
Management,"  Ch.  XI;  J.  R.  Commons,  "Trade  Unionism  and 
Labor  Problems,"  Ch.  XI ;  Dartmouth  College  Conference  on 
Scientific  Management,  pp.  60-83;  H-  Diemer,  "Factory  Organ- 
ization and  Administration,"  Chs.  XXIII,  XXIV;  J.  C.  Duncan, 
"The  Principles  of  Industrial  Management,"  Ch.  XV;  H.  Emer- 
son, "Efficiency,"  Ch.  X;  W.  D.  Ennis,  "Works  Management," 
Ch.  IV ;  H.  A.  Evans,  "  Cost  Keeping  and  Scientific  Management," 
Ch.  VIII;  H.  L.  Gantt,  "Work,  Wages,  and  Profits,"  Ch.  VI; 
L.  M.  Gilbreth,  "The  Psychology  of  Management,"  Ch.  IX; 
C.  B.  Going,  "Principles  of  Industrial  Engineering,"  Chs.  VII, 
VIII;  D.  S.  Kimball,  "Principles  of  Industrial  Organization," 
Ch.  XI;  J.  L.  Nicholson,  "Cost  Accounting,  Theory  and  Prac- 
tice," Ch.  VI;  J.  L.  Nicholson,  "Nicholson  on  Factory  Organiza- 
tion and  Costs,"  Ch.  II;  The  System  Company,  "How  Scientific 
Management  is  Applied,"  Chs.  IX,  X. 

Articles 

C.  B.  Auel,  "A  Review  of  Existing  Wage  Systems,"  American 
Machinist,  Vol.  36,  pp.  945-950;  K.  Banning,  "More  Work  and 
Fewer  Mistakes,"  System,  Vol.  24,  pp.  390-397 ;  C.  G.  Barth, 
"  Premium  Systems,"  Iron  Age,  Vol.  85,  pp.  1068-1070 ;  C.  Bender, 
"  Systems  of  Wages  and  their  Influence  on  Efficiency,"  Engineering 
Magazine,  Vol.  36,  pp.  498-512;  C.  Bender,  "Halsey  Premium 
Plan  and  the  Rowan  System,"  Engineering  Magazine,  Vol.  36, 
pp.  501-505  ;  S.  H.  Bunnell,  "Right  Principles  in  Works  Manage- 
m.ent,"  Iron  Age,  Vol.  87,  pp.  1084-1085  ;  A.  H.  Church,  "  Premium 
and  Piece  Work,"  Engineering  Magazine,  Vol.  46,  pp.  7-18 ;  H. 
Diemer,  "Bonus  and  Premium  System,"  Engineering  Magazine, 
Vol.  29,  pp.  719-730;  H.  Emerson,  "Efficiency  Reward,"  Engi- 
neering Magazine,  Vol.  41,  pp.  632-640 ;  H.  L.  Gantt,  "The  Bonus 
System  of  Rewarding  Labor,"  Review  of  Reviews,  Vol.  26,  pp.  326- 
328;  H,  L.  Gantt,  "The  Task  and  Bonus  System,"  American 
Machinist,  Vol.  35,  pp.  920-921 ;  H.  L.  Gantt,  "Compensation  of 
Workmen  and  Efficiency  of  Operation,"  Engineering  Magazine, 
Vol.  38,  pp.  813-823  ;  Vol.  39,  pp.  17-23  ;  H.  L.  Gantt,  "The  Task 
and  a  Day's  Work,"  Industrial  Engineering,  Vol.  10,  pp.  363-368 ; 


358  ECONOMICS   OF  EFFICIENCY 

H.  L.  Gantt,  "Task  Work  the  Basis  of  Proper  Management," 
Southern  Machinery,  Vol.  27,  pp.  44-48 ;  H.  L.  Gantt,  "Practical 
Application  of  Scientific  Management,"  Engineering  Magazine, 
Vol.  41,  pp.  1-22  ;  H.  L.  Gantt,  "Bonus  System  of  Wages,"  Engi- 
neering Magazine,  Vol.  35,  pp.  698-701;  F.  B.  Gilbreth,  "The 
Making  and  Use  of  Instruction  Cards,"  Industrial  Engineering, 
Vol.  II,  pp.  380-390;  C.  B.  Going,  "The  Efficiency  of  Labor," 
Review  of  Reviews,  Vol.  46,  pp.  329-338;  F.  A.  Halsey,  "The 
Premium  Plan  of  Paying  Labor,"  American  Society  of  Mechanical 
Engineers,  Transactions,  Vol.  12,  pp.  7SS-780;  J.  Nelson,  "Bonus 
and  Rating  for  Works  Executives,"  Iron  Age,  Vol.  91,  pp.  1159- 
1162  ;  F.  A.  Parkhurst,  "Piece  Work,  Premium,  Bonus,  Differen- 
tial Rate  and  Differential  Bonus  Systems  of  Wage  Payment," 
Industrial  Engineering,  Vol.  10,  pp.  337-345;  E.  H.  Schell,  "A 
Simple  Piece  Rate  System,"  American  Machinist,  Vol.  39,  pp.  765- 
768;  H.  F.  Searle,  "The  Premium  System  for  the  Payment  of 
Wages,"  Journal  of  Accountancy,  Vol.  9,  pp.  321-339;  S.  E. 
Thompson,  "Taylor  Differential  Piece  Rate  System,"  Engineering 
Magazine,  Vol.  20,  pp.  617-630. 


CHAPTER  XVI 

Organized  Labor  and  Efficiency  Methods 

A  trade  union,  as  defined  by  Mr.  John  Mitchell,  is 
an  association  of  workmen  who  have  agreed  among  them- 
selves not  to  bargain  individually  with  their  Trade 
employer  or  employers,  but  to  agree  to  the  union,  its 
terms  of  a  collective  or  joint  contract  between  °^®^^^g- 
the  employer  and  the  union.     Employees  as  well  as 
society  in  general  have  benefited  as  a  result  of  trade 
unions.     No  one  can  deny  that  unions  have  been  pro- 
ductive of  an  immense  amount  of  good,  but  unions  have 
not  always  been  just  and  right  in  the  wielding  of  their 
power.     Unscrupulous    leaders    have    often 
gained   control,    and   wielded   the   power   of  lousTeaders. 
unionism  for  personal  aggrandizement  or  for 
revenge  for  fancied  wrongs  committed  by  employers. 
Trade  unions  should  learn  to  avoid  the  unscrupulous, 
narrow-minded  leaders,  and  trust  their  power  in  the 
hands  of  leaders  of  sound  judgment  only.     If  unions  use 
precautions  so  that  leadership  is  intrusted  in  the  hands 
of  men  of  character,  they  will  gain  far  more  in  the  end, 
and  it  will  be  a  great  advancement  in  bringing  about 
a  better  understanding  between    employers    and   em- 
ployees, and  a  reaHzation  of  the  fact  that  workers  should 
cooperate  and  unite  their  interests  with  those  of  their 
employers,  and  not  be  antagonistic.     All  the  . 

demands  of  unions  should  be  fair  and  just,  unj^jst.^  °^ 
Unions  may  be  guilty  of  exploitation  just  the 
same  as  employers,  and  exploitation  by  either  is  unjust 
,and  should  be  avoided.     Dealings  between  unions  and 

359 


36o  ECONOMICS  OF  EFFICIENCY 

employers  should  be  reciprocally  based  upon  fairness  and 
justice. 

The  industrial  progress  made  in  the  past  has  been 
through  the  ehmination  of  work  and  not  by  making  it. 
The  same  will  be  true  of  future  industrial 
depen?s^  growth.  Progrcss  demands  the  constant  in- 
uponthe  vention  of  new  and  improved  means  and 
^f^°"^k^°^  methods  of  production,  and  the  accompany- 
ing saving  of  labor.  The  great  industrial 
progress  of  the  past  century  was  directly  due  to  the 
invention  of  labor-saving  machines.  The  period  of  in- 
vention which  gave  to  the  world  many  labor-saving 
machines,  and  so  completely  revolutionized  the  in- 
dustrial system,  is  known  in  history  as  the  Industrial 
Revolution.  We  are  in  the  dawn  of  a  second  industrial 
revolution  which  is  also  based  upon  labor-saving  devices. 
The  focus  of  attention  is  upon  the  human  element  in 
industry  and  not,  as  in  the  previous  case,  upon  the  me- 
chanical. The  aim  in  this  labor-saving  movement  is 
to  so  direct  human  energy  that  the  best  possible  results 
are  obtained  from  the  energy  expended.  The  changes 
which  will  result  from  the  saving  of  labor  through  better 
direction  will  be  as  important  upon  our  industrial  system 
as  the  previous  era  of  labor-saving  machines.  The 
first  industrial  revolution  proved  very  beneficial  to 
society  in  general,  and  the  second  will  eventually  prove 
as  beneficial  as  the  former. 

The  average  worker  is  more  or  less  suspicious  of  his 
employer,  and  this  has  been  true  since  man  began  to 
Employees  work  for  man.  A  worker  has  a  feeling  that 
suspicious  his  employer  will  take  every  opportunity  to 
of  em-  increase  his  profits  to  the  disadvantage  of  the 

poyers.  worker.  Sad  to  relate,  history  proves  to  us 
that  during  the  eighteenth  and  nineteenth  centuries, 
the  worker  was  justified  in  being  suspicious  of  every 


ORGANIZED   LABOR  AND   EFFICIENCY     361 

innovation  introduced  by  his  employer.  Employers 
as  a  whole  are  responsible  for  instilling  into  employees 
this  feeling  of  suspicion  of  their  actions.  It  is  not  the 
fault  of  the  worker  that  he  is  against  anything  that  is 
unwisely  or  thoughtlessly  sprung  upon  him.  The  first 
thought  is  that  it  is  for  further  exploitation,  and  when 
history  proves  that  this  is  usually  true,  can 
you  blame  him?  It  may  be  said  that  even 
to-day,  the  wage^arner^  isj;suany_^epLdc^ 
new  progosalajidsuspicious  of  any  innovation.  This 
attitude  isalways  present  with  ever3r"laBoring  force, 
and  is  one  which  should  be  considered  in  the  introduction 
of  any  change  which  affects  workers.  Failure  is  fre- 
quently due  to  the  lack  of  its  realization,  and  if  not  fail- 
ure, considerable  hindrance  is  put  in  the  way  of  the 
smooth  introduction  of  a  change. 

The  attitude  of  suspicion  and  of  doubt  of  the  intention 
of  the  employer  should  first  of  all  be  changed  to  one  of 
confidence  and  the  belief  that  if  a  change  is  pgeij^  ^f 
made,  it  is  not  for  the  exploitation  of  labor,   confidence 
but  for  its  uphfting  in  one  way  or  another,  inem- 
This  can  be  acquired  only,  in  any  laboring  ^  ^^^^' 
force,  by  being  open,  frank,  and  just  in  deahng  with 
labor,  by  taking  labor  into  confidence  in  the  case  of  a 
change,  and  by  carefully  explaining  the  reasons 
for  the  change  and  its  effect  upon  labor.     Such  q^^red.^" 
has  not  been  the  practice  of  employers  in  the 
past,   and  the  result  has  been,  in  the  introduction  of 
changes,  resistance,  opposition,  and  even  bitter  struggle, 
often  resulting  in  failure.     Efficiency  demands  protection 
of  labor  and  the  abolition  of  exploitation  in  every  form. 
It  stands  for  fairness  and  justice  in  dealing  with  labor, 
and  requires  the  taking  of  labor  into  confidence  in  all 
dealings  of  the  management  with  labor.     The  reahzation 
of  this  is  absolutely  necessary  to  change  the  long-rooted 


362  ECONOMICS  OF  EFFICIENCY 

attitude  of  suspicion  into  one  of  confidence,  which  is 
essential  and  necessary  to  obtain  the  cooperation  of 
the  laboring  force,  and  an  absolute  essential  for  the 
successful  introduction  of  efi&ciency  methods. 

For  a  century  after  the  introduction  of  the  factory 
system,  whatever  tended  to  increase  output  met  with 
Opposition  Hiore  or  less  strenuous  opposition  from  the 
to  new  workers.     Workers  invariably  beHeved  that 

machines.  ^]^g  benefits  of  improved  machinery  accrued 
to  the  employer,  and  not  to  the  employee.  During 
the  last  quarter  of  the  nineteenth  century,  many  union- 
ists bitterly  opposed  the  introduction  of  machinery, 
and  refused  to  allow  union  men  to  operate  machines. 
Coopers,  iron  workers,  stonecutters,  plumbers,  and 
cigar  makers  followed  this  policy.  During  recent 
years,  organized  labor  has  gradually  been  forced  to 
recognize  the  fact  that  the  introduction  of  labor-saving 
machines  is  necessary  for  industrial  progress,  and 
that  labor  benefits  thereby.  A  different  attitude  to- 
ward the  introduction  of  improved  machinery  exists 
to-day  from  that  which  existed  even  a  decade  ago, 
because  organized  labor  does  not  oppose  generally 
the  introduction  of  new  labor-saving  machines,  but 
welcomes  such  changes.  In  England,  the  Lancashire 
unions  encourage  improvements  in  cotton  factories, 
knowing  that  upon  the  prompt  adoption  of  them  de- 
pends the  very  Hfe  of  the  industry  in  which  they  are 
engaged. 

Laborers  should  realize  that  the  present  supply  of 
useful  things  is  possible  only  with  machinery,  and  with- 
Effects  of  ^^^  ^^'  ^^^y  would  not  be  enjoying  their 
new  ma-  present  standard  of  living.  They  should  also 
ciunes  on  know  that  it  is  only  by  more  and  better  ma- 
chinery that  the  commodities  now  enjoyed 
can  be  increased  and  cheapened  so  as  to  give  them 


ORGANIZED   LABOR   AND   EFFICIENCY     363 

greater  comforts.     From  the  point  of  consumption,  a 
greater  blessing  comes  from  increased  output. 

Many  workers  doubt  if  it  would  really  benefit  the 
working  people  to  turn  out  a  larger  output  than  at 
present,  and  still  believe  that  an  increased  increased 
output  will  throw  men  out  of  work.     History  output 
shows  that  increase  in  output  in  any  trade  beneficial 
always  results  in  more  men  being  employed, 
and  usually  in  an  increase  in  wages.     The  cheapening  of 
any  article  in  common  use  almost  immediately  results  in 
an  increased  demand  for  that  article.     Take  the  case  of 
shoes.     The  use  of  intricate  labor-saving  machines  for 
doing  every  element  of  the  work  which  was  concrete 
formerly  done  by  hand  has   resulted  in  the  case  of 
making  of  shoes  at  a  much  less  cost  than  they  ^^°^^- 
were  formerly  made.     As  a  result,  shoes  have  greatly 
decreased  in  price,  and  have  become  so  cheap  that  now 
almost  every  man,  woman,  and  child  in  the  working 
classes  buys  one  or  two  pairs  of  shoes  a  year  and  wears 
them  all  the  time,  whereas  formerly  each  worker  could 
not  afford  more  than  one  pair  of  shoes  a  year  for  himself, 
and  his  wife  and  children  were  forced  to  go  barefooted 
six  months  of  the  year.     The  demand  for  shoes  has  so 
increased  that  there  are  more  workers  engaged  in  the 
shoe  industry  to-day  than  ever  before.     As  a  result  of 
the  increased  output  coming  from  the  use  of  more  im- 
proved machinery  and  better  methods,  workers  are  en- 
joying comJorts  of  living  which  would  have  been  impos- 
sible without  them,  and  are  not  only  enjoying  higher 
wages  but  more  of  their  number  are  employed  than  would 
have  been  if  such  improvements  had  not  taken  place. 
Yet  even  to-day,  many  unionists  and  workers  may  be 
found  who  still  beheve,  as  their  fathers  before  them,  that 
it  is  against  their  best  interests  for  each  man  to  turn  out 
each  day  as  much  as  possible. 


364  ECONOMICS  OF  EFFICIENCY 

The  average  worker  does  not  realize  that  the  more 
labor  produces,  the  more  it  has.  The  greater  the  aver- 
Wages  de-  ^.ge  output  of  the  average  individual  in  a 
pend  on  particular  trade,  the  greater  will  be  the  aver- 
output.  g^gg  wage  earned  in  that  trade.     The  worker 

contributes  a  certain  share  in  production,  and  if  he  gets 
more  than  that  share,  he  is  exploiting  some  one  else,  but 
if  he  is  not  getting  that  share,  he  is  being  exploited.  The 
wage  which  he  receives  is  paid  from  the  share  he  con- 
tributes. It  stands  to  reason  that  the  greater  the  share 
which  the  laborer  produces,  the  greater  will  be  his  wage. 
This  is  invariably  the  case,  as  the  history  of  wages  proves. 
The  greatest  blessing  to  the  laborer  in  his  struggle  for 
increased  wages  is  to  be  able  to  increase  his  share  of 
production.  Every  worker  should  realize  that  every 
machine,  method,  and  device  to  increase  the  product  of 
labor  is  a  blessing  to  labor. 

The  very  same  thing  is  true  of  the  new  efhciency  move- 
ment which  has  proved  true  in  the  case  of  labor-saving 
Efficiency  machines.  Efficiency  increases  output  with  the 
consists  of  same  amount  of  energy  previously  expended 
labor-saving  and  the  same  time  occupied.  It  allows  the 
worker  to  increase  his  share  in  production,  and 
consequently  assures  him  a  higher  wage.  Efficiency  will 
bring  to  the  door  of  the  worker  many  comforts  which 
he  does  not  now  enjoy.  Workers  should  reaHze  that 
efficiency  methods  are  not  subtle  schemes  on  the  part  of 
employers  to  advance  their  interests  at  their  expense. 
It  took  nearly  a  century  and  a  half  for  workers  to  realize 
that  improved  machinery  was  for  their  good.  The 
realization  that  increased  output  and  improved  machines 
work  for  improved  standards  of  living  and  higher  wages 
will  soon  convince  workers  that  efficiency  methods  will 
work  for  the  same  end. 

One  of  the  greatest  fallacies  believed  by  many  union- 


ORGANIZED   LABOR  AND   EFFICIENCY     365 

ists  is  that  restricted  output  would  benefit  the  working 
classes.     This   fallacy  is    the    result   of    the    erroneous 
belief  that  there  is  just  so  much  work  in  the  Effect  of 
world,  and  the  less  one  does  the  more  there  restricted 
will  be   for  others.     It  was  long   held  as  a  output  on 
unionist  doctrine  that  if  a  worker  worked  too  '^°^  ^^^' 
fast  or  too  long  hours,  it  would  take  employment  away 
from  others.     Enlightened  unionists  to-day  realize  the 
fallacy  of  this  doctrine,  but  it  is  still  beheved  by  many. 
In  many  cities,  the  plumbers'  unions  forbid  the  use  of 
the  bicycle  in  going  from  job  to  job  because 
one  can  go  more  quickly  than  on  the  cars  or  Jfg^trictton  ^ 
by  walking.     A  few  years  ago,  the  carpenters' 
union    of    Chicago    declared    that   any   member   found 
guilty  of  excessive  work  and  rushing  on  a  job  would  be 
subject  to  a  fine  of  five  dollars.     It  is  a  common  practice 
of  union  men  even  to-day  to  make  it  unpleasant  for  any 
member  found  hastening  with  his  work  or  continuing 
work  after  quitting  time.     It  has  been  a  hard  struggle  to 
convince  unionists  that  restricting  output  works  to  their 
disadvantage  rather  than  to  their  benefit.     This  short- 
sighted policy  must  be  blotted  out,  and  unionists  should 
be  made  to  realize  that  all  restrictions  upon  output, 
whether   due   to   lack  of  sufficient  incentive  or  other 
causes,  inevitably  lead  to  a  reward  commensurate  with 
the  output,  and  that  in  every  trade  wages  received  be- 
come ultimately  proportionate  to  output. 

During  the  nineteenth  century,  unions  usually  pur- 
sued the  policy  of  increased  wages  and  curtailed  produc- 
tion,  believing   that   it   would   improve   the  changed 
condition  of  labor.     Little  did  they  know  that  views  of 
there  is  a  close  relation  between  wages  and  "^o^^®^^. 
output.     Workers  in  general  were  inspired   to   curtail 
output  by  the  widespread  delusion,  that  there  will  not 
be  work  for  all  if  all  work  to  their  utmost.    Beginning 


366  ECONOMICS   OF  EFFICIENCY 

with  this  century,  the  fallacy  of  restriction  of  output 
began  to  dawn  upon  the  more  enhghtened  unionists,  and 
their  influence  upon  the  laboring  force  in  general  has 
been  to  impress  it  upon  an  increasing  number  of  workers. 
Every  day  the  fallacy  is  being  brought  home  to  a  greater 
number  of  workers,  and  the  time  is  not  far  distant  when 
the  working  force  in  general  will  hold  up  to  ridicule  what 
for  many  years  was  held  as  an  absolute  necessity  in 
increasing  wages  and  improving  their  condition. 

All  who  believe  in  the  policy  of  restriction  will  oppose 
the  efhciency  movement.  Efficiency  demands  the  very 
Efficiency  opposite,  the  greatest  possible  increase  in  out- 
and  restric-  put  without  impairing  the  health  of  workers, 
tion  of  The  universal  acceptance  of  the  old  belief  of 

ou  pu  .  restriction  of  output,  as  a  delusion  detrimental 

to  the  interests  of  workers,  will  make  workers  the  more 
easily  realize  that  increased  output  coming  from  the 
various  efficiency  methods  is  for  their  benefit.  This  will 
break  down  the  opposition  which  developed  so  strongly 
against  the  efficiency  movement  in  its  incipient  stage. 
The  fallacy  of  the  restriction  of  output  idea  must  be 
made  plain  to  all  workers  because  it  is  a  strong  factor 
working  against  the  acceptance  of  efficiency  methods  as 
beneficial  to  workers.  Restriction  of  output  is  antagonis- 
tic to  efficiency.  Efficiency,  as  a  result  of  the  rapid  con- 
version of  the  workers  from  the  restriction  of  output 
delusion,  will  have  far  less  opposition  to  the  introduction 
of  its  methods  than  was  experienced  in  the  introduction 
of  labor-saving  machines. 

Energy,  skill,  and  dexterity  are  the  worker's  capital 
Efficiency  ^^^  should  be  adequately  protected  by  law. 
and  protec-  Organized  labor  declares  that  under  highly 
tion  of  specialized  conditions  workers  are  frequently 

wor  ers.  compelled  to  work  at  a  speed  which  impairs 
their  health  and  their  efficiency.     A  prominent  defender 


ORGANIZED   LABOR  AND   EFFICIENCY     367 

of  unionism  declares  that  no  industry  has  a  right  to  more 
than  that  amount  of  the  worker's  energy  which  can 
normally  be  replaced  by  the  food  and  the  rest  allowed 
him.  Such  an  attitude  of  unions  should  be  supported 
by  every  one.  Speeding,  overdriving,  and  sweating,  as 
they  impair  health  and  efficiency,  should  be  abolished. 
Speeding  machinery  at  the  expense  of  sapping  the  vitality 
of  workers  is  one  of  the  greatest  crimes  on  humanity. 
Efficiency  demands  the  conservation  of  the  human  ele- 
ment. It  demands  health  and  every  possible  precaution 
and  care  on  the  part  of  the  management  to  maintain 
working  conditions  most  conducive  to  health,  and  to 
take  the  very  best  care  of  workers.  It  further  demands 
a  careful  study  of  the  work  to  be  performed,  and  of  the 
workers  so  that  workers  will  not  work  beyond  their 
strength. 

Efficiency  stands  for  a  pace  which  may  be  maintained 
day  after  day  without  impairing  the  health  or  the 
vitality  of  the  workers.  It  is  not  obtained  Methods  of 
by  driving  or  by  speeding,  but  through  the  protecting 
careful  directing  of  energy,  and  having  the  w°^^®^s- 
worker  perform  his  task  with  the  best  methods,  amidst 
the  best  environments,  and  with  the  best  conditions  pos- 
sible. It  is  not  efficient  to  speed  up  temporarily,  and 
overstrain,  overfatigue  and  undermine  the  health  of 
workers,  but  it  is  efficient  to  scientifically  investigate  con- 
ditions and  workers,  and  to  guide  their  energy  so  that 
the  greatest  possible  results  can  be  obtained  from  the 
amount  of  energy  spent,  but  at  the  same  time,  the  fact 
is  borne  in  mind  that  the  pace  and  the  work  should  be 
such  that  workers  can  maintain  their  speed  day  after  day 
without  impairing  their  health.  Efficiency  prolongs  the 
productive  period  of  a  man's  Hfe,  and  makes  his  produc- 
tive period  more  productive  by  protecting  him  against 
fatigue,  and  everything  which  impairs  his  health.     The 


368  ECONOMICS  OF  EFFICIENCY 

efficiency  movement  from  the  standpoint  of  health  is  one 
of  the  greatest  blessings  which  has  befallen  labor.  The 
charges  that  efhciency  stands  for  speeding,  sweating,  and 
overdriving  are  absolutely  false,  and  are  made  by  those 
who  have  an  entirely  wrong  conception  of  what  efficiency 
stands  for.  There  never  has  been  an  industrial  move- 
ment which  promises  so  much  for  labor  in  general,  organ- 
ized or  unorganized,  as  the  efficiency  movement. 

The  charge  has  been  made  that  the  efficiency  move- 
ment means  greater  specialization  of  labor,  and  that  this 
.  will  make  work  more  monotonous,  demorahze 

an/in-  ^^c  laboring   class,   and  produce   a  class  of 

teUectuai  workers  of  lower  intelligence.  Efficiency  on 
ment°^'  ^^^  other  hand  demands  a  high  degree  of  in- 
telligence, provides  for  the  careful  training  of 
workers,  and  chooses  occupations  for  workers  for  which 
they  are  by  nature  best  fitted.  Efficiency  demands  care- 
ful training  of  the  inefficient  to  make  them  efficient.  It 
recognizes  the  need  of  an  intellectual  laboring  force,  and 
the  providing  of  careful  training  and  instruction  in  order 
to  give  skill  and  dexterity.  Not  only  that,  but  it  de- 
mands various  ways  of  making  the  laborers  more  intel- 
lectual as  free  libraries,  free  classes,  and  lectures,  and  in 
so  doing,  gives  the  laborer  an  opportunity  to  extend  his 
knowledge  to  a  broader  sphere  so  that  it  may  be  pos- 
sible for  him  to  make  the  most  out  of  his  occupation. 
Efficiency  stands  for  the  uplifting  of  labor,  for  making  the 
inefficient  efficient,  and  for  giving  the  industrial  system 
of  to-day  better  trained,  more  intellectual,  and  better 
skilled  workers. 

Some  see  in  the  efficiency  movement  a  cause  of  alarm, 
claiming  that  it  casts  upon  society  an  ever  increasing 
army  of  unemployed.  The  inefficient  and  the  old,  they 
claim,  will  be  dismissed  without  compunction,  and  this 
will  entail  an  increasing  burden  upon  society  and  cause 


ORGANIZED   LABOR  AND   EFFICIENCY    369 

much  suffering  to  the  discharged  workers.     As  already 
stated,  efficiency  endeavors  to  make  efficient  workers  out 
of  the  inefficient  through  careful  training.     It  ^^  . 
recognizes    permanency  m  service   which   is  and  the 
quite  the  opposite  of  a  temporary  speeding  up,   care  of  the 
sapping  the  vitahty  of  workers,  and  then  dis-  ^^jf^^gyg 
missal.      Efficiency  demands  the  protection 
and  care  of  the  sick,  and  recognizes  the  fact  that  workers 
who  through  their  hves  have  assisted  in  building  up  a 
business  have  a  right  to  be  protected  when  old  age  over- 
takes them.     Efficiency  strongly  advocates  sick  benefits, 

and  pensions  to  those  who  grow  old  through  _.     . 
.    .  ^  ^,     .     ,       ^  •       ^         1.      •  •     Pensions. 

giving  their  best  service  to  a  business  organi- 
zation. All  business  men  who  beheve  in  efficiency  advo- 
cate that  those  who  have  spent  their  hves  in  building  up 
a  business  should  be  cared  for.  Pension  schemes  have 
during  the  past  few  years  made  wonderful  growth,  and 
their  growth  will  be  still  greater  with  the  greater  spread 
and  more  universal  advance  of  efficiency  methods.  For 
safeguarding  against  inefficiency,  and  for  the  provision  of 
protection  for  old  age,  the  efficiency  movement  promises 
a  great  blessing  to  the  laboring  class  as  a  whole. 

Many  unionists  believe  that  the  piece-rate  system  of 
rewarding  labor  is  some  arrangement  to   squeeze   the 
worker  into  making  him  work  for  less  wages,   opposition 
Unionists  generally  consider  piece  rate  as  an  of  unions 
evil  to  be  abolished  whenever  possible.   Never-  *o  *^®  P^^^e 
theless,  many  successful   unions  operate  by 
piece  rate.     There  is  a  growing  tendency  to  view  piece 
rate  with  somewhat  greater  favor,  as  a  proper  system 
for  rewarding   labor   according   to   its   efficiency.     The 
present  widespread  distrust  of  piece  rate  is  due  to  the 
practices  of  employers  in  the  past.     Experi- 
ence  has  taught  workers  that  when  wages  ex- 
ceed a  certain  amount,  their  piece  rates  are  cut,  so  that 


370  ECONOMICS  OF  EFFICIENCY 

they  earn  no  more  for  working  hard  than  they  do  for 
taking  it  easy.  This  is  not  the  fault  of  the  piece-rate 
system,  but  ignorance  in  the  operation  of  the  system. 
Rates  are  fixed  by  guess  and  no  attempt  made  to  find 
out  what  would  be  just,  and  no  knowledge  of  what  would 
be  the  increased  output  as  a  result  of  the  introduction  of 
the  piece-rate  system.  With  such  a  haphazard  method 
of  introduction,  readjustment  and  rate  cutting  results, 
and  trouble  arises.  The  system  should  not  be  blamed 
but  the  ignorance  of  employers. 

Efhciency  methods  demand  that  wherever  possible 
the  laborer  should  be  paid  according  to  piece  rate,  but 
T,  instead  of  guess  in  ascertaining  the  task  and 

Proper  .        .^      .  .        .    ^  .  ,  , 

piece  rates  the  rate,  scientific  investigation  is  made,  and 
benefit  as  we  havc  seen,  a  just  and  fair  rate  is  ascer- 

tained. Knowledge  takes  the  place  of  guess. 
Labor  is  not  allowed  to  overtax  its  strength  in  work. 
All  possible  means  are  taken  to  find  out  the  proper  task 
and  its  fair  and  just  remuneration.  What  is  fairer  than 
the  rewarding  of  labor  wherever  possible  according  to 
its  efficiency,  and  with  a  reward  that  is  fair  and  just? 
With  a  bonus  or  premium,  extreme  care  is  taken  to 
guarantee  labor  a  fair  and  just  reward,  and,  to  the  effi- 
cient, a  greater  reward  based  upon  productivity.  It 
matters  not  the  scheme  of  payment  for  wages,  the 
worker  himself  is  carefully  studied,  and  every  precaution 
taken  to  conserve  his  health  and  strength.  Increased 
wages  are  not  the  result  of  overtaxed,  overtired,  and 
overstrained  muscles.  With  efficiency  methods,  good 
wages  can  be  earned  by  the  average  worker  without 
strain,  overfatigue,  and  impairing  health.  Opposition 
to  the  piece-rate  system  of  the  efficiency  movement  has 
been  chiefly  due  to  a  misconception  of  what  efficiency 
stands  for.  As  soon  as  workers  know  the  demands  of 
efficiency,   and  its  precautions   to   guarantee  labor  its 


ORGANIZED   LABOR  AND   EFFICIENCY    371 

fair  and  just  remuneration,  they  will  realize  that  the 
efficiency  movement  is  ever  protecting  and  looking  out 
for  their  interests. 

Mr.  Mitchell  states  the  view  of  organized  labor  when 
he  declares  that  the  destruction  of  the  working  men  is 
the  individual  bargain,  and  that  their  salva-  Forms  of 
tion  is  the  joint,  united,  or  collective  bargain,   wage  ^ 
There   are   two   forms   of   w^age   bargaining,  bargaining, 
individual   and   collective.      If   each   worker   makes   a 
separate   and  independent  bargain  with  his  employer, 
the  method  is  one  of  individual  bargaining.  ^  ^.  .^    , 

-p.  ,  r  1  1    Individual. 

If  employees  or  a  group  01  employees  send 
representatives  to  bargain  with  the  employer,  and  an 
agreement  is  reached  which  fixes  the  standard  wage  for 
each  group  or  for  each  class  of  work,   the 
method  is  collective  bargaining.     The  abihty 
to  require  collective  bargaining  is  the  chief  aim  of  union- 
ism, and  is  a  right  which  every  union  man  is  very  jealous 
in  demanding  and  in  protecting. 

Collective  bargaining  is   essential   to  guard   the  in- 
terests of  labor ;  few  to-day  advocate  its  overthrow  and 
the  return  to  individual  bargaining.     It  is  an         . 
integral  part  of  our  industrial  system,  and  its  does^not^ 
operation  is  necessary  and  essential  for  Indus-  abolish 
trial  growth  and  progress.     Nearly  all  abuses  ^oiiective 
and  unjust  conditions  affecting  workers  have 
arisen  where  workers  have  not  enjoyed  this  right  for 
determining  wages  and  conditions  under  which  work  is 
carried  on.     The  efficiency  movement  in  its  demands  for 
fairness  and  justice  in  the  treatment  of  labor  does  not 
advocate  the  abolition  of  collective  bargaining,  but  its 
continuance  as  a  further  guarantee  for  the  protection  of 
labor.     A  misconception  of  efficiency  exists  among  em- 
ployers as  well  as  among  employees.     Some  employers 
have    declared    that    the    efficiency    movement    would 


372  ECONOMICS   OF  EFFICIENCY 

abolish  collective  bargaining,  would  restore  individual 
bargaining  in  all  classes  of  labor  and  would  at  the  same 
time  gradually  cause  the  disappearance  of  unions. 
Such  employers  do  not  know  of  what  they  are  talking. 
The  efhciency  movement  stands  for  the  cooperation  of 
labor  working  through  unions  and  collective  bargaining. 
The  unions  should  not  be  controlled  by  selfish  narrow- 
minded  leaders  but  by  broad-minded,  fair,  and  just  men 
who  work  not  for  selfish  motives  but  for  the 
lead^^s.  ^^^^  ^^^  i^^^  treatment  of  labor  in  their  par- 
ticular trades.  Unionism  has  suffered  more 
from  the  abuse  of  power  by  unprincipled,  selfish,  and 
ignorant  leaders  than  from  any  other  cause.  Unionism, 
to  accompHsh  the  most  good,  has  no  place  for  such  leaders, 
nor  has  the  efficiency  movement. 

Unions  in  general  have  opposed  the  premium  and  the 
bonus  systems  of  paying  labor,  and  there  is  no  reason 
for  such  opposition.  The  task,  its  method  of 
No  basis  ^  performance,  the  time  and  the  remuneration 
tion°of'°^^"  allowed  are  not  fixed  except  with  the  coopera- 
unions  to  tion  of  the  laboring  force  affected.  Both  em- 
premium  ployers  and  employees  work  in  harmony  in 
systems.  their  effort  to  establish  a  fair  task,  just  time, 
and  fair  remuneration.  The  premium  or  the 
bonus  is  fixed  with  the  assistance  of  labor  through  its 
representatives.  It  is  short-sightedness  on  the  part  of 
unions  to  oppose  either  scheme  for  remunerating  effi- 
ciency because  it  is  just  that  greater  efi&ciency  should  be 
rewarded,  and  the  premium  or  the  bonus  is  a  fair  way  of 
remuneration.  Unions  should  bear  in  mind  that  the 
premium  or  the  bonus  is  not  earned  at  the  expense  of 
overstrain,  fatigue,  or  impaired  health.  If  this  were 
so,  it  would  increase  inefficiency  and  defeat  the  very 
purpose  of  both  premium  and  bonus  schemes  of  rewarding 
labor.     Success  and  the  greatest  benefit  to  labor  come 


ORGANIZED  LABOR  AND   EFFICIENCY     373 

through  unions  and  collective  bargaining,  but  are  based 
on  justice  and  fairness  in  dealing  with  employers. 
Fairness  and  justice  between  the  two  great  classes  should 
be  reciprocal.  Efficiency  demands  such  reciprocal  rela- 
tions, and  only  where  such  prevail,  can  cooperation  and 
efficiency  be  found. 

Efficiency  demands  conditions  of  work  most  conducive 
to  health  and  to  continuity  of  service.      Such  conditions 
are  ascertained  by  careful  and  expert  investi-  -gnion  (le- 
gation, and  with  the  cooperation  of  labor.     In  mands 
the  past  and  at  present,  unions  base  their  based  on 
demands  in  the  case  of  wages,  conditions  of  ^^^^^' 
work,  and  hours  of  work,  upon  guess.     How  much  better 
it  would  be  to  follow  the  dictates  of  efficiency  and  base 
their  demands  upon  knowledge.     This  recognition  by 
unions  would  give  us  a  new  unionism  accompHshing  more 
for  labor  than  the  old,  working  in  harmony  with  em- 
ployers for  industrial  progress,  and  would  confer  benefits 
upon  labor  and  society  in  general. 

Mr.  John  Mitchell  strikes  a  keynote  when  he  declares 
that  if  the  trade-union  movement  is  permanently  suc- 
cessful, it  will  be  due  to  the  compelling  of 
constant  invention  of  improved  means  and  unionism 
methods   of   production,    and   the   continual  and  effi- 
saving  of  labor,  and  that  trade-unionism  should  antagoSstic 
make  labor  valuable,  compel  employers  to  save 
it  wherever  possible,  and  make  the  competition  among 
workers  one  of  efficiency.     With  this  declaration  of  the 
aims  of  unionism  coming  from  its  most  distinguished  and 
ablest  member,  can  organized  labor  consistently  oppose 
the  efficiency  movement  ?     The  opposition  to  efficiency 
methods  will  continue  for  years  to  come,  and  will  be  due 
to  ignorance  on  the  part  of  workers  of  what  efficiency 
really  means  and  its  demands  on  labor.     Until  unionists 
are  educated  as  to  what  unionism  stands  for,  serious 


374  ECONOMICS  OF  EFFICIENCY 

opposition  will  arise  to  efficiency  methods.  A  great  need 
is  education  in  the  principles  of  unionism,  in  what  effi- 
ciency methods  stand  for,  and  in  what  way  labor  will  be 
affected  as  a  body.  As  soon  as  union  men  know  what 
unionism  stands  for,  and  what  the  efficiency  movement 
means,  they  will  realize  that  to  follow  consistently  the 
principles  of  unionism  they  cannot  oppose  the  efficiency 
movement. 

There  is  urgent  need  of  teaching  employers  what  effi- 
ciency means  and  what  it  demands.  Few  employers 
Ignorance  really  know  what  efficiency  demands  of  them 
as  to  the  and  of  employees.  As  a  result  of  this  igno- 
meaning  of     rance,  many  false  views  have  been  given  as  to 

ciency.  ^^^  effects  of  efficiency  methods  upon  labor. 
Fallacious  effects  are  stated,  and  cause  antagonism  to 
arise  between  employer  and  employee,  as,  for  example, 
many  employers  have  declared  that  efficiency  stands  for 
the  abolition  of  collective  bargaining.  This  fallacious 
notion  has  caused  no  end  of  opposition  from  organized 
labor.  A  number  of  employers  have  said  that  efficiency 
stands  for  the  abolition  of  unionism,  and  this  has  aroused 
many  of  the  unions  to  stand  at  almost  open  arms  against 
efficiency  methods.  The  teaching  of  the  fundamental 
principles  of  efficiency  is  essential  to  employers  as  well  as 
employees,  and  when  the  principles  are  understood,  each 
will  realize  that  when  efficiency  methods  are  properly 
carried  out,  they  confer  benefits  upon  both,  and  it  will 
be  to  the  interest  and  advantage  of  each  to  hasten  their 
adoption  in  every  plant  and  enterprise. 

The  efficiency  system  is  destined  to  become  an  in- 
tegral part  of  our  industrial  system  in  the  future.  Mis- 
takes will  be  made  by  employers  in  the  installation  of 
efficiency  methods,  and  opposition  will  be  made  by  mis- 
informed unionists.  Knowledge  must  take  the  place  of 
ignorance  in  the  conducting  of  business  enterprises,  and 


ORGANIZED   LABOR  AND   EFFICIENCY     375 

efficient  methods  of  doing  work  will  sooner  or  later  dis- 
place inefficient  methods.     The  change  may  be  retarded, 
but  the  constant  pressure  of  economic  forces 
will  finally  break  down  all  opposition.     Men  ^y^^'m  an 
working    for   themselves   do   not    object   to  integral 
methods  which  will  make  their  work  easier  part  of  our 
and  more  productive.     Why  do  wage-earners  system! 
oppose  efficiency?     Efficiency  adds  to  wages, 
to  the  comfort  of  workers,  protects  their  health,  saves 
them  from  fatigue,  and  prolongs  their  years  of  producti\dty. 
The  opposition  which  exists  to-day  is  the  result  of  lack 
of  knowledge  of  the  principles  underlying  the  efficiency 
movement.     The   dissemination  of   these  principles   is 
what  is  badly  needed  to  break  down  this  opposition,  and 
will  change  the  opposition  into  a  fervent  support  of 
efficiency  methods. 

Efficiency  is  necessary  for  progress,  and  opposition  to 
its  methods  is  due  to  ignorance  and  suspicion  rather 
than  to  observation  of  what  efficiency  will  do.  opposition 
A  large  amount  of  opposition  also  comes  from  to  efficiency 
the  remembrance  of  bitter  experiences  of  the  ?"®  *o 
past.  Teaching  the  laboring  classes  the  *s°°^^°*^®- 
general  principles  of  unionism  and  of  efficiency  will 
clear  away  much  of  the  opposition  because  it  will  be 
shown  that  unionists  should  support  efficiency  if  they 
support  their  own  principles.  There  is  no  basis  for  any 
opposition  of  organized  labor  to  efficiency  methods  ex- 
cept ignorance,  bad  economic  theory,  and  the  remem- 
brance of  bitter  experiences.  Any  system  which  lowers 
costs  by  eliminating  unnecessary  labor  should  be  wel- 
comed and  encouraged.  It  is  inefficiency  which  retards 
industrial  progress.  The  converting  of  inefficiency  into 
efficiency  benefits  labor,  employers,  and  society  in  gen- 
eral. Theodore  Roosevelt  once  declared  that  we  have 
no  higher  duty  than  to  promote  the  efficiency  of  the 


376  ECONOMICS  OF  EFFICIENCY 

individual  and  that  there  is  no  surer  road  to  the  effi- 
ciency of  the  nation. 

QUESTIONS 

1.  What  is  a  trade  union  ? 

2.  Show  how  society  is  benefited  by  unions. 

3.  What  has  brought  about  the  present  attitude  of  suspicion 
of  many  laboring  men  toward  employers  ? 

4.  Account  for  the  opposition  of  many  unionists  to  new  ma- 
chines and  new  methods  of  production. 

5.  What  is  the  fallacy  of  the  restricted  output  theory? 

6.  Why  are  so  many  union  people  opposed  to  the  piece-rate 
system  ?    How  may  this  opposition  be  overcome  ? 

7.  Show  how  proper  piece  rates  benefit  labor. 

8.  What  are  the  different  forms  of  wage  bargaining  ?     Why  do 
unions  place  so  much  importance  on  collective  bargaining  ? 

9.  Show  that  efficiency  does  not  abolish  collective  bargaining. 

10.  Show  that  the  aims  of  unionism  and  of  efficiency  are  not 
antagonistic. 

11.  Show  that  much  of  the  opposition  of  unionism  is  due  to 
selfishness  of  union  leaders. 

12.  What  are  the  methods  of  protection  of  workers  advocated 
in  the  efficiency  movement  ? 

13.  What  methods  should  be  adopted  by  employers  to  gain  the 
confidence  of  employees? 

14.  Show  that  progress  depends  upon  the  elimination  of  work. 

15.  Show  that  increased  output  is  beneficial  to  labor. 


REFERENCES 

Books 

C.  L.  Bolen,  "Getting  a  Living,"  Ch.  X;  F.  T.  Carlton,  "The 
History  and  Problems  of  Organized  Labor,"  Ch.  VI ;  Clark  and 
Wyatt,  "Making  Both  Ends  Meet,"  Ch.  VII;  J.  R.  Commons, 
"Labor  and  Administration,"  Chs.  IX,  X;  F.  A.  Fetter,  "The 
Principles  of  Economics,"  Ch.  27;  H.  L.  Gantt,  "Work,  Wages, 
and  Profits,"  Ch.  Ill;  J.  Goldmark,  "Fatigue  and  Efficiency," 
Ch.  VII;  A.  T.  Hadley,  "Economics,"  Ch.  XI;  J.  Mitchell, 
"Organized  Labor";    E.  R.  A.   Seligman,   "Principles  of  Eco- 


ORGANIZED   LABOR  AND   EFFICIENCY     377 

nomics,"  Ch.  XXVII;   F.  W.  Taylor,  "Shop  Management,"  pp. 
186-194. 

Articles 

L.  D.  Brandeis,  "Organized  Labor  and  Efficiency,"  Survey, 
Vol.  26,  pp.  148-151;  H.  R.  Callaway,  "Efficiency  and  the 
Worker,"  Engineering  Magazine,  Vol.  45,  pp.  715-717;  F.  T. 
Carlton,  "Scientific  Management  and  the  Wage  Earner,"  Journal 
of  Political  Economy,  Vol.  20,  pp.  834-845 ;  J.  R.  Commons, 
"Organized  Labor's  Attitude  toward  Industrial  Efficiency," 
American  Economic  Review,  Vol.  i,  pp.  463-472;  T.  N.  Carver, 
"Machinery  and  the  Laborers,"  Quarterly  Journal  of  Economics, 
Vol.  22,  pp.  210-232  ;  H.  B.  Drury,  "Organized  Labor  and  Scien- 
tific Management,"  Industrial  Engineering,  Vol.  14,  pp.  99-101, 
145-149  ;  J.  P.  Frey,  "The  Relationship  of  Scientific  Management 
to  Labor,"  Journal  of  Political  Economy,  Vol.  21,  pp.  400-411; 
H.  Godfrey,  "Attitude  of  Labor  towards  Scientific  Management," 
Annals  of  American  Academy  of  Political  and  Social  Science, 
Vol.  44,  pp.  59-73  ;  J.  Golden,  "Industrial  Peace  from  the  Stand- 
point of  a  Trade  Unionist,"  Annals  of  the  American  Academy  of 
Political  and  Social  Science,  Vol.  44,  pp.  141-144;  J.  Golden, 
"The  Attitude  of  Organized  Labor,"  Journal  of  Accountancy, 
Vol.  1 2,  pp.  189-194 ;  R.  Hugins,  "The  Effect  of  Scientific  Manage- 
ment on  Wages,"  South  Atlantic  Quarterly,  Vol.  13,  pp.  51-68; 
A.  S.  Johnson,  "The  Effect  of  Labor-saving  Devices  upon  Wages," 
Quarterly  Journal  of  Economics,  Vol.  20,  pp.  86-109  ;  P.  Klapper, 
"Organized  Labor's  Attitude  toward  Machinery,"  Journal  of 
Accountancy,  Vol.  10,  pp.  321-333  ;  "Labor  Unions  and  Efficiency," 
Nation,  Vol.  92,  p.  334;  H.  T.  Lewis,  'The  Problem  of  the  Effi- 
ciency of  Labor,"  Popular  Science  Monthly,  Vol.  82,  pp.  153-162  ; 
J.  Mitchell,  "Economic  Necessity  of  Trade  Unionism,"  Atlantic 
Monthly,  Vol.  113,  pp.  161-170;  W.  B.  Prescott,  "Trade  Unions 
and  Industrial  Education,"  National  Education  Association,  1910, 
pp.  265-273 ;  C.  B.  Thompson,  "The  Relation  of  Scientific  Man- 
agement to  the  Wage  Problem,"  Journal  of  Political  Economy, 
Vol.  21,  pp.  630-642  ;  H.  White,  "Machinery  and  Labor,"  Annals 
of  American  Academy  of  Political  and  Social  Science,  Vol.  20, 
pp.  223-231 ;  A.  P.  Winston,  "The  Trade  Union  and  the  Superior 
Workman,"  Atlantic  Monthly,  Vol.  90,  pp.  794-801. 


INDEX 


Accident  prevention,  efficiency  and, 
254;  divisions  of,  255;  spirit,  271; 
how  attained,  271;  museum,  273; 
necessary  measures  for,  280. 

Accidents,  fatigue  and,  188 ;  classes  of, 
252  ;  losses  from,  253  ;  causes  of,  255  ; 
ignorance  and,  256 ;  carelessness  and, 
256;  clothing  and,  258;  poor  lighting 
and,  259;  fires  and,  260;  slippery 
floors  and,  261 ;  alcohol  and,  262 ; 
long  hours  and,  263;  intense  work 
and,  264 ;  safeguards  and,  265 ;  man- 
agement and,  273. 

Adaptability,  need  of,  139. 

Advertising,  purpose  and  aim  of,  64 ; 
requisites  for  good,  64. 

Age  limit,  119. 

Ailments,  treating  slight,  228. 

Aim  of  the  book,  9. 

Air,  effects  of  foul,  210;  value  of  pure, 
210;  circulation,  213;  water  in,  215; 
composition  of,  287. 

Air  conditioning,  factors  in,  211. 

Alcohol,  effects  on  workers,  187;  acci- 
dents and,  262. 

Antidotes  to  fatigue,  186. 

Apprentices,  care  in  selection,  126,  141 ; 
imder  old  apprenticeship  system, 
135;   in  corporation  schools,  142. 

Apprenticeship  system,  origin  of,  134; 
characteristics  of,  134 ;  limitations  of, 
134;  abuses  of,  134;  crude  form  of 
training,  135 ;  abolition  of  the  old, 
136;  a  modified,  136. 

Artificial  lighting,  means  of,  205;  re- 
quirements for  good,  206. 

Ashes,  how  to  care  for,  293. 

Athletics,  promotion  of,  245. 

Attendance,  encouraging  prompt,  80; 
causes  for  irregular,  80. 


Authority,  clearly  defined,  83. 
Automatic,  fire  alarms,  298 ;  sprinklers, 

303. 
Average  worker,  methods  of,  92. 

Baldwin  Locomotive  Company,  145, 
147. 

Banks,  savings,  purpose  of,  246. 

Bargaining,  collective,  371;  individual, 
371. 

Bathing,  facilities  for,  239. 

Benefits,  kinds  of,  243  ;  how  to  manage, 
243  ;  new  feature  in,  243. 

Blackford,  Dr.  Katharine,  108. 

Brain,  fatigue  and  the,  181. 

Buildings,  design  of,  54. 

Business,  former  methods  of,  10; 
tendency  of  modern,  18;  activity, 
aim  of,  20;  efficiency  in,  29;  goal  in, 
29;  scientific  study  of,  40;  guess- 
work in,  89;  principles  vmderlying, 
93  ;  ruling  force  in,  199. 

Business  enterprise,  aim  of,  37. 

Business  management,  lax  methods  in, 
10. 

Buying,  waste  in,  35;  importance  of 
quality  in,  56;  importance  of,  63. 

Capability,  ability  to  tell,  125. 
Capital,  definition  of,  23 ;  kinds  of,  23 ; 

advantages  of,  23. 
Card   record,    for   each   worker,    127; 

advantages  of,  127. 
Carelessness,      efficiency     and,      124; 

accidents  and,  256. 
Changes,  how  to  introduce,  34. 
Characteristics,     promote     efficiency, 

123;  how  to  detect,  124. 
Chemical  extinguishers,  306. 
Chemistry  of  fire,  287. 


379 


38o 


INDEX 


Child  labor,  efficiency  and,  38;  acci- 
dents and,  276. 

Cincinnati,  University  of,  149. 

Cleanliness,  need  of,  188;  accidents 
and,  259. 

Clock,  portable,  301 ;  stationary,  302. 

Club  house,  245. 

Clubs,  kinds  of,  246 ;  work  of,  246. 

Collective  bargaining,  meaning  of,  321 ; 
aim  in,  371;  efficiency  and,  371. 

Combustion,  meaning  of,  287;  spon- 
taneous, 288. 

Compensation  in  accidents,  279. 

Competition,  definition  of,  20 ;  business 
men  and,  20;  results  of  keen,  21; 
basis  of  successful,  21. 

Computed  efficiencies,  value  of,  29. 

Confidence,  in  employer,  361 ;  how  ac- 
quired, 361. 

Conservation,  of  workers,  7;  of  health, 
201 ;  of  the  eye,  206. 

Contentment,  effect  on  output,  78. 

Contract  system,  321,  337. 

Cooperation,  definition  of,  70;  im- 
portance of,  70;  how  to  gain,  100. 

Coordination,  definition  of,  48;  es- 
sentials for,  48. 

Corporation  school,  definition  of,  140; 
methods  of  a,  140;  instructors  in  a, 
141 ;  period  of  apprenticeship  in  a, 
142 ;  character  of  training  in  a,  144. 

Cost  system,  definition  of,  51;  im- 
portance of,  51 ;  requisites  for  a,  52; 
advantages  of  a,  52. 

Credit,  place  in  business,  65 ;  requisites 
for  granting,  65. 

Day's  work,  a  reasonable,  92. 

Delaney,  J.  C,  257. 

Denominator,  how  to  find,  28. 

Details,  handling  of,  49. 

Differential  piece-rate  S3^stem,  requi- 
sites for  the,  349;  the  rate  in  the, 
349;  in  operation,  350. 

Discipline,  a  necessity,  83 ;  methods  of 
enforcing,  84;  fining  and,  85. 

Dispensary,  how  conducted,  229. 

Dissipation,  efficiency  and,  83. 


Division  of  labor,  definition  of,  13; 
machinery  and,  13. 

Draughts,  dangers  from,  216. 

Dress,  standard,  258. 

Drifter,  meaning  of,  120;  how  to  tell  a, 
120. 

Drinking  water,  importance  of,  234; 
sources  of,  235  ;  how  supplied,  236. 

Driving,  evils  of,  75. 

Dust,  kinds  of,  216;  effects  of,  217; 
and  sickness,  218;  means  of,  pre- 
vention, 218;  dangers  in,  297. 

Eating,  habits  of,  172. 

Economist,  importance  of,  8. 

Educational  system,  efficiency  and,  31. 

Educational  work,  kinds  of,  244. 

Efficiency,  the  goal  in  business,  6; 
essence  of,  7 ;  a  public  need,  27 ; 
definition  of,  28;  how  to  ascertain, 
28;  denominator  in,  28;  in  business, 
29 ;  purpose  of,  29 ;  railroads  and,  30; 
in  public  administration,  30;  and 
educational  system,  31 ;  applying,  to 
work,  S3 ;  problem  of,  37 ;  and 
strenuousness,  37  ;  and  child  labor,  38 ; 
benefits  from,  39;  knowledge  and, 
39;  system  and,  48;  coordination 
and,  48;  demands  of,  50;  plant 
location  and,  53 ;  quality  and,  57 ; 
hiring  men  and,  iii;  health  and, 
116;  nervous  system  and,  117; 
habits  and,  119;  carelessness  and, 
124;  training  and,  156;  fatigue  and, 
178;  intemperance  and,  186;  en- 
vironment and,  202;  dust  and,  216; 
restriction  of  output  and,  366;  in- 
tellectual development  and,  368; 
collective  bargaining  and,  371. 

Efficiency  movement,  evolution  of,  27  ; 
extent  of,  27;  definition  of,  33;  and 
intelligent  workers,  39;  and  the 
management,  98. 

Efficient  cycle,  183. 

Electric  lighting,  205. 

Emergency  hospital,  226. 

Emergency  room,  equipment  of,  275. 

Emerson,  H.,  352. 


INDEX 


381 


Emerson  efficiency  system,  352;  in 
operation,  353. 

Employers'  liability,  systems  of,  278. 

Employment,  barriers  to,  118. 

Employment  department,  115. 

Energy,  waste  of,  36 ;  methods  of  con- 
serving, 194. 

Enthusiasm,  73. 

Environment,  standard,  20;  efficiency 
and,  202  ;  returns  for  proper,  220. 

Exhaustion,  causes  of,  179. 

Experimenting  with  men,  no. 

Exploitation,  does  not  pay,  8;  imjust, 
359- 

Eye,  conservation  of,  206 ;  strain,  207  ; 
protection  to  the,  270 ;  infections,  271. 

Factors  in  production,  22 ;  careful 
study  of,  24. 

Factory  inspection,  how  made,  278. 

Factory  system,  definition  of,  2;  in- 
troduced new  problems,  3. 

Fatigue,  causes  of,  178;  effects  of,  179; 
warning  of,  180;  and  memory,  182; 
and  stupidity,  182;  and  sleep,  183; 
nourishment  and,  185;  antidotes  to, 
186;  and  intemperance,  187;  and 
accidents,  188;  and  noise,  189; 
training  and,  igi ;  real  and  false,  191 ; 
unnecessary,  192;  wastes  from,  195. 

Favoritism,  evils  of,  71 ;  and  promotion, 
326. 

Fining,  in  disciplining,  85. 

Fire,  losses  from,  284;  loss  and  insur- 
ance, 286  ;  chemistry  of,  287  ;  causes 
of,  289 ;  matches  and,  292 ;  smoking 
and,  292 ;  controlling  a,  298. 

Fire  alarms,  automatic,  298. 

Fire  drill,  importance  of,  311. 

Fire  escapes,  precautions  with,  309. 

Fire  pail,  306. 

Fire  patrol,  301. 

Fire  prevention,  preventing  waste 
through,  284 ;  divisions  of,  287. 

Fireproof  buildings,  308. 

Fire  tanks,  306. 

Fire  tower,  309. 

Fire  walls,  310. 


First  aid,  to  the  injured,  274 ;  jars,  275. 
Fisher,  Irving,  195,  224. 
Fountain,  sanitary,  236. 
Fumes,  how  to  remove,  219. 

Gantt,  H.  L.,  343,  344,  345,_35i- 
Gantt  bonus  system,  definition  of,  343 ; 

standard  time  and,  344;  task  and, 

345  ;  health  and,  347. 
Gases,  how  to  remove,  219. 
Gas  jets,  precautions  with,  293. 
Gas  lighting,  205  ;  ill  effects  of,  209. 
Gas  stove,  precautions  with,  295. 
General  Electric  Company,  146. 
Glare,  evils  of,  208;  how  to  prevent, 

208. 
Globes,  purpose  of,  208. 
Goggles,  care  in  using,  270. 
Goods,  moving,  60 ;  system  in  shipping, 

60;  packing,  61;  routeing,  61. 
Grenades,  307. 

Habits,  efficiency  and,  119,  159;  defi- 
nition of,  160;  instincts  and,  160; 
examples  of,  163;  results  of  proper, 
163  ;  difficulties  in  formation  of,  163 ; 
of  industry,  165;  proper,  of  work, 
171;  proper,  of  living,  171;  proper, 
of  eating,  172;  classes  of,  173;  old 
notion  of,  173  ;  tobacco,  175 ;  tea  and 
coffee,  175. 

Hadley,  President,  20. 

Halsey,  F.  A.,  340. 

Halsey  premium  wage  system,  meaning 
of,  340 ;  how  it  operates,  340. 

Handling  men,  methods  of,  75. 

Health,  signs  of,  117;  factor  in  effi- 
ciency, 200;  and  profits,  200;  con- 
servation of,  201 ;  protection  of,  224, 

Hearing,  efficiency  and,  117. 

Heating,  methods  of,  295. 

Hiring,  importance  of,  107 ;  common 
practice  in,  109;  the  right  man,  in; 
guesswork  and,  112;  superintendent 
and,  112;  essentials  in,  112. 

Holding  men,  methods  of,  76;  impor- 
tance of,  no. 

Honesty,  123. 


382 


INDEX 


Human    factor,    long    neglected,     5; 

study   of,    11;    accurate    knowledge 

and,  12. 
Humidity,  effects  of,  214,  215. 

Ideas,  search  for  new,  40. 
Ignorance,    wastes   and,    29;    and   in- 
efficiency, 40;  in  business,  89;  and 

environments,    221 ;    accidents   and, 

256. 
Ill  health,  effects  of,  201. 
Illinois  law,  for  air  requirements,  213. 
Illumination,  efficiency  in,  203. 
Incentive,  kinds  of,  75. 
Incompetency,  139. 
Indentures,  136. 
Indigestion,  effects  of,  232. 
Individual  bargaining,  factors  in,  321 ; 

definition  of,  371. 
Individual  records,  327. 
Individual  wash  bowls,  238. 
Inducements  for  work,  325. 
Industrial   evening   schools,   evolution 

of,  151 ;  kinds  of,  151. 
Industrial  progress,  requisites  for,  17. 
Industrial  revolution,   meaning  of,   2 ; 

changes  introduced  by,  131. 
Industrial  schools,  definition  of,   152 ; 

characteristics  of,  152. 
Industrial  system,  development  of,  3. 
Industrial    training,    aim    in,    31;    in 

public  schools,  151. 
Industry,  need  of,  122;  how  to  detect, 

123  ;  habits  of,  165. 
Inflammable  liquids,  care  of,  291. 
Instincts,  definition  of,  160;  habits  and, 

160;  characteristics  of,  160. 
Insurance,  fire  loss  and,  286. 
Intelligence,  need  of,  in  workers,  121. 
Intemperance,    a   habit,    174;    fatigue 

and,  187. 
Inventory,  permanent,  59;  importance 

of,  61 ;  how  to  take,  61. 
Irregularity,   causes  for,   80;   how  to 

treat,  81. 

James,  William,  191. 

Job  work,  how  planned,  loi. 


Kenlon,  John,  303. 

Knocker,  avoid  a,  121. 

KLnowledge,  need  of,  10;  prerequisite  of 
efficiency,  10 ;  application  of,  11; 
requisites  for  accurate,  12;  results  of 
accurate,  12;  success  and,  13. 

Labor,  former  methods  of,  9 ;  definition 
of,  23. 

Labor  efficiency,  requisites  for,  114. 

Labor  force,  an  efficient,  107 ;  an  ideal, 

US- 
Lamps,  overhead,  206 ;  individual,  206. 

Land,  definition  of,  22. 

Latent  ability,  142. 

Lavatory,  old  form  of,  237 ;  dangers  in, 
237- 

Leaders  unscrupulous,  359. 

Leading,  importance  of,  75. 

Letters,  personal,  120. 

Lewis  Institute,  150. 

Light,  excessive,  207;  insufficient,  208. 

Lighting,  effects  of  good,  202 ;  natiual, 
203 ;  artificial,  203 ;  methods  of 
natiiral,  204;  methods  of  artificial, 
205 ;  electric,  205  ;  gas,  205 ;  injurious, 
conditions,  207;  good,  a  necessity, 
210. 

Limitations  of  men,  125. 

Living,  proper  habits  of,  171. 

Location,  chief  factors  affecting,  53. 

Lockers,  kinds  of,  238. 

Loyalty,  need  of,  73;  to  business,  74. 

Lunches,  kinds  of,  233  ;  employers  and, 
233 ;  methods  to  assure  proper,  234. 

Machinery,  cleaning  moving,  269. 

Machines,  opposition  to  new,  362; 
effect  of,  on  labor,  362. 

Management,  lay  methods  of,  10;  im- 
portance of,  23 ;  efficient,  45 ;  re- 
sponsibility of,  98;  and  accidents, 
273- 

Manager,  a  new  official,  3;  and  sub- 
ordinates, 49. 

Manual  alarm  box,  300. 

Manual  training  schools,  aim  of,  154. 

Manufacturing,  evolution  of,  2. 


INDEX 


3^3 


Markets,   importance   of,   4;   progress 

and,  4;  limit  specialization,  15. 
Matches,  cause  of  fires,  292. 
Materials,     economical    use    of,     57; 

storage  of,  58. 
Medical  department,  functions  of,  225 ; 

and  efficiency,  231. 
Medical  examination,  need  of,  118. 
Memory,  fatigue  and,  182. 
Mental  relaxation,  efficiency  and,  185 ; 

agencies  for,  185. 
Methods  of  work,  the  old,  90 ;  best,  91 ; 

of  the  average  worker,  92 ;  standard, 

94;  adoption  of  standard,  98. 
Misfits,  meaning  of,  113  ;  evils  of,  113. 
Mitchell,  John,  359. 
Motion  study,  definition  of,  94;    how 

made,  94. 
Moving  goods,  methods,  60. 

Nerve  paths,  determination  of,  161. 
Nervous  system,   efficiency  and,   117; 

habits  and  the,  161. 
Noise,  fatigue  and,  189. 
Nutrition,  proper,  231 ;  how  to  assure. 

232. 

Oiling,  dangers  in,  269 ;  precautions  in, 

269. 
Oil  lamp,  how  to  use,  294. 
Oily  wastes,  dangers  in,  290. 
Open  places,  dangers  in,  296. 
Organization,  definition  of,  45 ;  eflBcient, 

46;  holding  men  in,  no. 
Output,    increased,    and    labor,    363; 

increased,  and  wages,  364 ;  restricted, 

and  labor,  365. 
Overcrowding,  dangers  in,  310. 

Packing  goods,  61. 
Pensions,  247 ;  efficiency  and,  369. 
Permanence  in  a  working  force,  76. 
Personality,    importance    of,     71 ;    of 

doctor  and  nurse,  230. 
Personal  letters,  objections  to,  120. 
Philadelphia  fire  tower,  309. 
Physical    endurance,    requisites     for, 

117. 


Physical    examination,    necessity    for, 

226. 
Physical  training,  importance  of,  32. 
Piece  rates,  definition  of,  327 ;  fixing, 

328;  vmder  old  system,  329;   foster 

soldiering,   330;   and   quality,   355; 

unions  and,  369 ;  benefit  labor,  370, 
Pipe  sprinklers,  305. 
Piping,  precautions  in,  295. 
Planning  department,  its  work,  loi. 
Plant  location,  factors  in,  53. 
Plumbing,  care  in,  239. 
Practice  shops,  147. 
Premium   wage   system,    the   Halsey, 

340;    how    it    operates,    340;    the 

Rowan,  342 ;  how  it  operates,  343. 
Prizes  for  homes,  248. 
Production,  problem  in,  4;  aim  in,  8; 

specialization  and,  18;  definition  of, 

22  ;  factors  in,  22  ;  quality  in,  57. 
Profits,  cause  of,  20;  kinds  of,  20;  and 

health,  200. 
Profit     sharing,     definition    of,     334; 

methods,  334;  disadvantages  of,  336. 
Progress,  markets  and,  4;  elimination 

of  work  and,  360. 
Promotion,  methods  of,  77 ;  favoritism 

and,  326.. 
Promptness,  how  to  encourage,  80. 
Public  administration,   efficiency  and, 

30. 
Punctuality,  how  to  obtain,  79. 

Quality,  standard,  20;  in  buying,  56; 
in  production,  57;  piece  rates  and, 
355- 

Rate  cutting,  329. 

Rate  fijiing,  stupidity  in,  328;  essentials 

for,    331 ;    workers'    share   in,    333 ; 

necessary  in  some  cases,  334. 
Recreation,  need  of,  186;  rooms,  240; 

kinds  of,  245. 
Relaxation,  efficiency  and,  185. 
Reports,  requisites  for,  49 ;  importance 

of,  49- 
Rest,    importance   of,   95;    time   for, 

95- 


384 


INDEX 


Restriction  of  output,  methods  of,  365  ; 
labor  and,  365  ;  efl&ciency  and,  366. 
Richter,  M.  M.,  298. 
Roosevelt,  Theodore,  375. 
Routeing,  savings  from,  61. 
Rowan,  James,  342. 
Rowan  premium  wage  system,  342. 
Rubbish,  care  of,  290. 

Safeguards,  necessity  of,  265;  old  view 
of,  266;  list  of,  266;  drawing  atten- 
tion to,  267 ;  proper  time  for  pro- 
viding, 267 ;  workers  and,  268. 

Safety  devices,  effect  on  workers,  279. 

Savings  banks,  purpose  of,  246. 

Selection,  of  workers,  116;  of  ap- 
prentices, 126. 

Self-interest  and  business,  199. 

Selling,  efl&ciency  and,  63. 

Seniority,  when  recognized,  77. 

Sentiment  and  business,  199. 

Serfdom,  320. 

Servitude,  labor  and,  320. 

Shipping,  system  in,  60. 

Shop  instruction,  147. 

Sickness,  extent  of,  224;  drain  on  in- 
dustry, 225. 

Sight,  need  for  good,  117, 

Sitting  at  work,  effects  of,  192 ;  v/here 
possible,  193  ;  not  laziness,  193. 

Skill,  meaning  of,  138;  habit  and,  159. 

Skilled  workers,  need  of,  106. 

Sleep,  effect  of,  183;  fatigue  and,  183; 
habits  of,  184. 

Sling-psychrometer,  214. 

Smoking,  dangers  in,  292. 

Soldiering,  evils  of,  81 ;  elimination  of, 
82 ;  science  of,  324 ;  piece  rates  and, 
330. 

Space,  proper  allowance  for,  212. 

Specialization,  meaning  of,  14;  in  the 
factory,  15;  in  machines  and  tools, 
15;  effects  on  labor,  16;  dangers  of, 
16;  progress  and,  18. 

Speeding,  effects  of,  189. 

Spitting,  evils  of,  239. 

Spontaneous  combustion,  reasons  for, 
288. 


Sprinklers,  automatic,  303 ;  mechanism 
of,  304;  operation  of,  304. 

Staircases,  wooden,  309. 

Standardization,  definition  of,  18; 
extent  of,  19;  demands  of,  19;  kinds 
of,  20;  a  necessity,  62. 

Standards,  importance  of,  35;  not  per- 
fect, 96 ;  changes  in,  96. 

Standpipes,  307. 

State  and  protection  of  workers,  277. 

Statistics,  need  of  accident,  253. 

Storage  of  materials,  58. 

Storeroom,  location  of,  58;  arrange- 
ment in,  59 ;  records  in,  59. 

Stovepipes,  how  to  use,  296. 

Strenuousness,  eflSciency  and,  37. 

Stupidity,  fatigue  and,  182. 

Success,  knowledge  and,  13 ;  essentials 
for,  46;  personality  and,  72;  wage 
problem  and,  317. 

Suggestions,  50. 

Supervision,  importance  of,  99. 

Sympathy,  its  need,  74. 

System,  definition  of,  46 ;  installation  of, 
47 ;  advantages  of,  48. 

Tact,  definition  of,  123, 

Tardiness,  dealing  with,  79 ;  ineflficiency 
and,  78. 

Task,  in  piece  rates,  330;  in  Gantt 
system,  345;  in  Taylor  system,  350; 
in  day  work,  352. 

Taylor,  F.  W.,  91,  349- 

Taylor  differential  piece-rate  system, 
requisites  for,  349;  rate  in,  349; 
task  in,  350 ;  in  operation,  350. 

Temperature,  effects  of  high,  215. 

Thermostats,  electrical,  298;  pneu- 
matic, 299;  installation  of,  299. 

Thrift,  advantages  of,  122. 

Time,  wastes  of,  36 ;  causes  for  wasting, 
323- 

Time  study,  meaning  of,  94 ;  how  made, 
94. 

Time  wages,  how  fixed,  321 ;  disad- 
vantages of,  322;  foster  soldiering, 
323;  and  individual  records,  327; 
remedying  faults  of,  327. 


INDEX 


38s 


Tobacco  habit,  175. 

Toxic   impurities,    definition   of,    178; 

effects  of,  181 ;  power  to  resist,  180; 

how  disposed  of,  182. 
Trade  preparatory  schools,   definition 

of,  154;  work  of,  154. 
Trade  schools,  definition  of,   152 ;  re- 
quirements of,  153 ;  supervision   of, 

153. 
Trade  vmions,  definition  of,  359;  and 

piece    rates,     369;     and     premium 

systems,  372  ;  aims  of,  373. 
Training,  physical  and  moral,  32 ;  long 

neglected,  132;  importance  of,  133; 

in  best  methods,  139;  and  fatigue, 

191. 

Uncertainty  of  a  new  worker,  108. 
Utility,  definition  of,  22;  varieties  of, 
22. 

Vacancy,  how  to  fill,  114. 

Vacations,  247. 

Ventilation,  definition  of,  211 ;  natural, 

211;  artificial,  211;  methods  of,  212. 
Vocational   schools,   piurpose  of,    154; 

importance  of,  154. 

Wage  bargaining,  forms  of,  371. 
Wage     problem,     solution     of,     315; 
parties  to,  316;  success  and,  317. 


Wages,  earning  of,  318;  time,  how 
fiixed,  321 ;  disadvantages  of  time, 
322;  how  to  increase,  326. 

Wage  system,  a  proper,  318;  early 
appearance  of,  320;  restrictions, 
321. 

Waste  products,  savings  from,  58. 

Wastes,  extent,  s ;  how  to  reveal,  29  ; 
in  public  administration,  30;  in 
educational  system,  31 ;  kinds  of, 
35 ;  in  buying,  35 ;  in  using  materials, 
35 ;  of  time,  36 ;  of  energy,  36 ;  from 
soldiering,  81 ;  from  ignorance,  139 ; 
from  poor  habits,  166 ;  from  fatigue, 

195. 

Water,     drinking,     234-236;    in    air, 

215. 
Welfare    work,    importance    of,     241 ; 

varieties  of,   242 ;  how  to  manage, 

242. 
Windows,  benefits  from,  204. 
Wiring,  precautions  in,  294. 
Work,  old  methods  of  doing,  90;  one 

best  way  of,  90;  reasonable  day's, 

92;  qualifications  for  efficient,  116; 

limits  of,   190;  elimination  of,    and 

progress,  360. 
Worker  methods  of  average,  92;  the 

efl&cient,    132;   his  work,    194;   and 

safeguards,  268. 
Working  day,  length  of,  190. 


2C 


THE    following    pages   contain   advertisements   of 
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of  B, 


JLconomics  or  ousiness 

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Instructor  in  Political  Science  in  the  College  of  the  City  of  New  York 
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THE  MACMILLAN  COMPANY 

Publishers  64-66  Fifth  Avenue  New  York 


NEW  AND  ENLARGED  EDITION 

Business 
Organization  and  Combination 


An  Analysis  of  the  Evolution  and  Nature  of  Business  Organization  in  the 
United  States  and  a  Tentative  Solution  of  the  Corporation  and  Trust  Problems 

By   lewis   H.   HANEY,   Ph.D. 

Professor  of  Economics  in  the  University  of  Texas.    Author  of  "  A  Con- 
gressional History  of  Railways  "  and  "  History  of  Economic  Thought" 

Clo^A,  8vo,  ^23  pages,  $2.00  net 

Dr.  Haney  in  his  treatment  of  business  organization  recognizes 
two  kinds  :  business  that  is  productive  from  the  social  point  of  view, 
and  business  that  is  productive  only  from  the  individual  point  of 
view.  According  to  the  social  point  of  view,  business  is  productive 
when  it  adds  to  the  net  sum  of  goods  and  services  which  men  want ; 
that  is,  when  the  amount  of  food,  clothes,  books,  automobiles,  teach- 
ing, medical  service,  etc.,  is  increased.  But  individuals  may  grow 
rich  in  ways  which  do  not  increase  the  net  sum  of  goods  and  ser- 
vices and  still  be  actively  engaged  in  business,  or  in  production  from 
the  individual  standpoint.  A  large  part  of  advertising  is  merely  ac- 
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another  business  man  loses.  So  it  is  with  some  "speculation"  and 
some  middlemen's  activities.  But  all  this,  when  recognized  as  law- 
ful and  when  the  price  is  freely  paid,  Dr.  Haney  calls  "business"; 
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simply  the  amount  of  income  or  private  gain  which  he  acquires  le- 
gally. In  his  treatment  Dr.  Haney  has  recognized  "business"  to 
include  some  activities  which  add  nothing  to  the  sum  total  of  so- 
ciety's wealth. 

The  usefulness  of  this  book  as  a  text  in  courses  on  Business  Or- 
ganization or  Corporation  Finance  has  been  increased  by  the  addi- 
tion of  a  chapter  tracing  the  development  and  organization  of  a  large 
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as  a  text  in  the  above  courses  and  also  in  courses  on  Trusts  has  been 
increased  by  the  addition  of  a  chapter  on  the  Sherman  act  and  its 
interpretation.  In  this  chapter  Professor  Haney  gives  the  history  of 
the  application  of  the  Sherman  Anti-Trust  Law  and  an  account  and 
criticism  of  recent  developments  in  policy. 

Besides  the  addition  of  these  two  chapters,  Professor  Haney  has 
further  improved  the  book  by  minor  changes  in  the  text  so  that  it  is 
now  more  satisfactorily  adapted  than  ever  before  to  classroom  use. 


THE   MACMILLAN  COMPANY 

Publishers  64-66  Fifth  Avenue  New  York 


Industrial    Combinations    and 
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Edited  by  WILLIAM   S.   STEVENS,  Ph.D. 

Instructor  in  Economics  in  Columbia  University 
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EXTRACT  FROM   PREFACE 

During  the  last  two  or  three  years  while  the  editor  of  this  volume  was  giv- 
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impressed  by  the  need  of  a  presentation  of  the  subject  that  should  be  strictly 
impartial,  that  should  advocate  no  theories,  but  yet  should  present  the  prob- 
lems that  arise  in  relation  to  Trusts  comprehensively,  and  as  they  are.  The 
realization  of  this  need  was  increased  by  the  fact  that  a  large  number  of 
writers  have  shown  the  disposition  to  confuse  the  problems  to  which  the 
Trust  gives  rise,  with  those  that  develop  in  connection  with  corporations 
and  large  scale  production. 

The  publication  of  the  Steel  and  Interstate  Commerce  Committee  Inves- 
tigations bridged  many  of  the  chasms  which,  in  the  opinion  of  the  editor,  lay 
in  the  way  of  a  satisfactory  treatment  of  the  subject  from  source  material. 
Thereupon  it  was  decided  to  attempt  the  present  volume,  a  book  that  should 
not  give  the  reader  a  second  hand  knowledge  of  the  Trusts,  but  which 
should  place  before  him  the  original  documents  themselves :  poohng, 
Trusts,  factors  and  international  agreements;  court  decisions  and  laws 
against  Trusts  ;  Trust  methods  of  fixing  prices,  eliminating  competition  and 
restraining  trade ;  the  dissolution  plans  of  dissolved  Trusts ;  lease  and 
license  agreements  of  representative  patent  monopolies ;  and  the  views  of 
eminent  business  and  professional  men  as  to  the  proper  methods  of  hand- 
ling this  gigantic  problem. 

Throughout  the  preparation  of  the  volume  two  purposes  were  held  steadily 
in  mind.  The  first  was  to  design  a  volume  that  should  place  within  the 
reach  of  the  students  in  courses  in  Trusts  in  our  colleges  and  universities, 
material  of  which  much  is,  as  the  editor  knows  from  personal  experience, 
only  too  often  difficult  of  access  or  else  altogether  unavailable.  The  second 
purpose  of  the  editor  was  the  collection  of  such  a  set  of  materials  as  would 
afford  the  ordinary  reader  who  chances  to  be  interested  in  Trusts,  a  fair 
knowledge  at  first  hand  of  the  historical  development  of  the  Trust  move- 
ment in  the  United  States,  and  a  thorough  comprehension  of  those  problems 
in  regard  to  them  that  the  country  is  facing  to-day. 

"  The  author  has  performed  a  distinct  public  service  in  making  available 
the  most  important  material  bearing  upon  the  trust  problem  in  America." 
—  Louis  D.  Brandeis. 


PUBLISHED  BY 

THE   MACMILLAN  COMPANY 

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